Self-Employed Health Insurance Deduction vs. form 1095-A entries

[mrpooh]

NOTE:  I submitted this query in 2016.  It's no longer relevant as the process with TurboTax has changed.  Read on if you wish, but no need to come to my rescue as the issue is no longer an issue.

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Do I enter Health Insurance Premium payments in the expenses section of Schedule C (for self-employed health insurance premium deduction) if I already entered data in the Personal section (Health Insurance purchased through Marketplace - with data from form 1095-A) ?  

The instructions in the schedule C business expense section say:
Do not enter premiums you paid for your employees or premiums paid through Healthcare.gov or your state market place or exchange.

All I know is I mailed a monthly payment to the state, but my rate reflected a monthly advance payment of premium tax credit.

I don't want my entries to be redundant as a result of entering things in two sections.

[mrpooh]

NOTE:  I submitted this query in 2016.  It's no longer relevant as the process with TurboTax has changed.  Read on if you wish, but no need to come to my rescue as the issue is no longer an issue.

[kellyafitz]

Please if you will, what's changed?  I am also self-employed.  I purchase my health insurance through the Exchange even though I don't qualify for a subsidy.  It doesn't appear as though TurboTax is automatically including my premiums from the 1095-A to the Self-Employed health insurance section.

[24x]

Turbotax called me last week saying that there is a whole team working on this issue (bug). Hopefully I will hear back with a solution to the problem soon.

[kellyafitz]

24x, thank you!

[domokun]

Is there any update on this bug? Having the same issue!

[kellyafitz]

domokun, it DID eventually work.  (I think).   I just had to make sure I checked the box, "Self Employed and bought a Marketplace plan" in the Schedule A.  In addition I clicked on my specific business in the"Income from my business or self-employment" part.  This transferred my premiums to the Self-Employed Health Insurance Premiums.

Go to the Personal Section then Health Insurance.  Answer the questions and you'll come upon the parts I mentioned above.

[domokun]

I got it! Thank you.

[bart1]

I've entered the 1095-A and linked it to our S-Corp as per the comments in this thread, but the difference between premiums paid and the premium tax credit are flowing to my Schedule A as an itemized deduction rather than 1040 Line 29 Self-employed health insurance deduction. I even deleted the 1095-A, re-entered it, and linked it to the S-Corp, but am getting the same results. Is there a way to force the premium difference over to 1040 Line 29? Or, is there something I'm missing that's causing them to flow to Schedule A? Looking for ideas.

[24x]

Turbo tax people told be that there was a whole team working on this 'bug'. That was well over a month ago. I am sorry to hear that they have not fixed the problem yet! Meantime, I manually adjusted most of the entries on  my tax return to get the full premium deduction as I am supposed to. It was a huge pain! I think this problem is only happening when AGI minus Heath Insurance Premiums are less than the Obama Care threshold for AGI. In other words if the AGI exceeds the threshold by the amount of the Health Insurance Premiums Paid then the full deduction is showing up on 1040 line 29 as it should (at least it was in my case).

[bart1]

Thank you for your quick reply!

I need to make a correction, because I found a box that should have been checked, but wasn't. It's on the  Other Situations screen of the K-1 entry sequence. It reads:

"I personally paid health insurance and/or long-term care insurance premiums for myself and my family and this S corporation paid me wages."

Check it, and follow the instructions carefully. Premiums don't go in this section if you reported them on a 1095-A, but W-2 wages do. Once this section was filled out properly, the app put the correct amount on 1040 Line 29.

[cmdv]

Well, I am afraid that this part  - the Health Insurance through the marketplace - of my taxes will still have some sort of error. Even though it is not producing an error message, I think My health insurance payments should have/ could have  gone to schedule C as self employed, and they went to schedule A, where I did not expect to see anything, anyway, becasue usually my medical expenses ( which may be painful expense for me 🙂 aren't enough to matter so that section comes out as a zero anyway. MY problem was  partly that I qualified at the end of the year for a medicaid ( free) plan because my family income was so low . This mid year change was never reflected on that 1095A form. The state sent a corrected 1095B form but there was no option to combine the information to show the real, correct information. First of all - the forms didn't match up, and turbo tax seems to totally skip the 1095B. I suppose the  state and federal government dosen't ask for those "B "forms because they are already keeping track ...?...... Once I made it though the sequence without owing additional money, I left the entries alone. I think these tips like yours need to be part of the pop up help! it is frustrating to click on help and get no help!

[24x]

People like you and I (Self Employed People who does not have a choice other than the Obama Care - the biggest disaster ever) is a very small part of the US tax payer population. I guess Turbo Tax does not want to spend the resources on fixing issues that effects a small population. I call it irresponsible!

[bart1]

Actually, it does work once that box is checked and all questions are answered properly. I am thankful for that.

[24x]

Lucky you! I guess it works if you have a S-Corp and Other Situation screen of the K-1 entry sequence is part of the process. I have an LLC and I don't deal with K-1 stuff so it does not work for me.