Self Employment Health Insurance Deduction

[LisaKoz]

Hello!

I have entered my health insurance premiums in the 1095-a section. On my expense list, its not a matching number, in fact its almost double! It is also found this way on my Schedule C (the high number). While I was going through entering my data the deduction was said to be the correct amount I entered. Any idea why? 

[ColeenD3 · Accepted solution]

Be careful that you did not enter them twice. There is a way to allocate the 1095-A to Self-employed health insurance in the 1095-A section. Do not enter it again under expenses if you did the following.

You are correct to enter the health insurance premium information from your 1095-A in the Personal > Health Insurance section in TurboTax.  This is information will be used in Form 8962 to determine any adjustment needed in the premium tax credit your received.  Form 8962 Line 26 will show the resulting over/under tax credit and be transfered to your 1040 Line 69.

Since you self-employed, you are also permitted to deduct your portion of the health insurance premiums (total premium minus the premium tax credit your are permitted) as a business expenses.  

TurboTax will compute this amount and enter it on 1040 Line 29.  If no amount amount is showing up on 1040 Line 29, go through the Personal >Health Insurance section again making sure to answer the question about being self-employed AND selecting the Schedule C to which you want to attach the deduction.  When you are stepping through the questions, you have to click on "edit" when you get to the 1095-A data screen.  The self-employment question is on the page after you have reviewed your 1095-a entries.

[HydroSci]

My K-1 has SE insurance in 4a and in 13 as M.  After entering the 1095 data, I end up with nearly twice the deduction and it also states that I do not need to pay back the premium assistance, despite a high AGI.  How do I resolve these issues?

[IHaveABigQuestion]

What if you are an S-corp with no schedule C? Where do you enter health insurance premiums to get the correct above-the-line deduction while still generating the Form 8962 you need to reconcile the Marketplace PTC?

[ThomasM125]

@IHaveABigQuestion You will see a question on the Other Situations page when you enter your S corporation K-1 schedule that has an option I personally paid health insurance and the S corporation paid me wages, you need to check that box. On the next page you will be asked to enter your insurance premiums, but if you had insurance through the government exchange, you should not enter your premiums there, but do enter them when you enter your form 1095-A.

When you enter your form 1095-A, you will see a screen Let us know if these situations apply to you, where you will indicate I'm self-employed and bought a Marketplace plan. On the next page, you will indicate that the type of business income is Income from my S corporation, and you will highlight the name of the corporation.

TurboTax will calculate the health insurance deduction and premium tax credit or repayment appropriate for you.