Using TurboTax Premier 2021 for MAC. I want to take the self-employment health insurance deduction on Schedule 1, Line 17. Override greyed out on the edit menu.

[Kessler20Wood]

No number accepted even after clicking through to the (very small) supporting line.  Why am I unable to enter a number here?

[GeorgeM777]

One possible explanation why you are not able to enter an amount for health insurance is because your business has no net income.  A self-employed person may deduct only as much health insurance as the net income earned from the business.  In other words, if your business earns no money or incurs a loss, you get no deduction. 

Additionally, if you have more than one business, you can't combine the income from all your businesses for purposes of the income limit. You may only deduct your health insurance against the income from one of your businesses.  Also, you may not take the self-employed health insurance deduction if you're eligible to participate in a health insurance plan maintained by your employer or your spouse's employer.

@Kessler20Wood

[Kessler20Wood]

I agree with all of your comments, however, none of those comments change that fact that I am advised by a CPA to use the Adjustments line to take a deduction for the health insurance payments made.  I have not just income but profits from self-employment that far exceed the health insurance premiums paid.  

Can Intuit simply permit people who know what they are doing to input an override where guided by a CPA? 

I see the other complaints here similar to mine, and if I can not do this I will have to switch to another product that lets me do what I need to do to file my taxes.

[JillS56]

Yes, you are allowed to deduct your self-employed health insurance.   To clarify the statement made by @GeorgeM777, if you are a sole proprietor and have a loss you cannot deduct the health insurance.   

Your CPA is correct in telling you that you can claim the health insurance as self-employed under adjustments.   To enter your health insurance premiums, follow these steps:

1. Search for Schedule C and select the Jump to link.
2. If this is your first time entering info about your self-employment work, you’ll be asked some initial questions before coming to the Expenses section.
   • If you previously entered info on your self-employment work, select Edit next to the type of work you entered previously. Scroll down to the Expenses section and select Add expenses for this work.
3. Select Less Common Expenses, scroll down and if you do not see health insurance, then click on "show more" to show all expense categories. Select Health insurance premiums and select Continue.
4. On the Tell us about health insurance premiums for your [business] work, enter the total amount of health insurance premiums you paid.

Deducting Health Insurance Premiums If You're Self-Employed

[Kessler20Wood]

Thank you @JillS56 for your reply of appropriate depth, and I would think for most people your reply would work very well.  For me, Schedule C does not apply, however.  I live outside the USA and am self-employed as the only person working in my sole proprietorship.  Given the foreign registration and taxation of the business, I am using form 5471 (under the direction of a USA-based CPA) to report the business income beyond the salary I draw.  Last year, and I expect this year, I will use Schedule 1 Line 8z to enter additional "Other Income" from the business taken from a (TurboTax unsupported) Form 5471 which I will file with my return.  But as I understand the USA tax code, I should be able to take the Health Insurance Premium deduction on Schedule 1 since I am self-employed.  I just can't get the the program to take the numbers there given the uniqueness (I presume) of my situation.  Any and all advice welcome for this Expat!

[DaveF1006]

To clarify, why can't you not prepare a Schedule C?  According to this IRS source, form 5471 is only used for U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations file Form 5471 and schedules to satisfy the reporting requirements of sections 6038 and 6046, and the related regulations.

Does this sound like you?

@Kessler20Wood

[Kessler20Wood]

Thank you @DaveF1006 - the business is set up outside the USA is as a GmbH.  It is like an LLC but there is stock for which I am the sole owner.  Given that, my USA CPA is preparing 5471.  I just want to be able to take the self-employed health insurance deduction but cannot find a way to do it.  

[Cynthiad66]

This is a way to try as if you received a K-1 for your LLC or GmbH

Here are the steps to ensure you get the SEHI Deduction associated with your partnership income reported on your Schedule K-1 (Form 1065):

1. Open your tax return, if you haven't already
2. Select Federal, then Wages & Income (this may show as Wages & Expenses depending on your program)
3. Scroll down and select Show more next to S-Corps, Partnerships, and Trusts
4. Start Schedule K-1
5. On the Did you receive any Schedules K-1? screen, select Yes
6. Select Start next to Partnerships/LLCs (Form 1065)
7. On the Partnership Name and Address screen, enter the info and select Continue.
8. Continue entering your info
9. Once you get to the Check Boxes That Have an Amount screen, your K-1 should have an amount for Self-Employment Income and, if your partnership paid for the SEHI, an amount for box 13 with a code M. You may have any number of other boxes that have amounts listed, as well
10. Once you have completed the entry of your box 13 code M (if applicable) and box 14 (required for a SEHI deduction), select Continue. Enter any remaining info for the other boxes on your K-1
11. On the Describe the Partnership screen, if you paid your own insurance premiums, check the box next to I personally paid health insurance and/or long-term care insurance premiums for myself and my family
    1. If you checked the above box, you’ll see the Unreimbursed Partnership Expenses screen. Select Yes
12. Continue through the screens until you reach the screen for Any Self-Employed Insurance Costs? Enter any amounts you paid personally on these screens

Once you’ve completed your Schedule K-1 entry, your premium amounts will show as a Self-Employed Health Insurance Deduction on Schedule 1, line 17.

Note: Your deduction for SEHI may be limited by the amount of the self-employed income reported by the partnership (less the self-employment tax on that income).

[Kessler20Wood]

@Cynthiad66 I followed your instructions to attempt to capture the SEHI deduction, but an unintended result is that a self-employment tax is generated by the program.  This is a foreign GmbH and I pay all social insurance due in the country of residence, so I do not also owe self-employment tax in the States.  In my view, I should be able to follow the instructions of my CPA based in the States, which are: 1) file the prepared Form 5471 for the business, 2) Claim the foreign tax credit on Form 1116; 3) Declare the residual profit as Additional Income on Schedule 1.  I just want to take the SEHI as well since I am self-employed and pay out of pocket for health insurance for every family member.  Why won't the program allow me to enter it on Schedule 1, Line 17?  That is the simple way to do what should be done.

[DaveF1006]

For one thing, Line 17 on Schedule 1 is a calculated amount that is entered elsewhere in the return.  You can't enter this directly on the form as the program is not designed to work strictly with forms.

File the return as Cynthiad66 has described and claim a foreign tax credit for the amount of social insurance you paid for in the foreign country. This means you will pay self-employment taxes in the US but claim a credit for the taxes you paid in the foreign country. Also you will be able to claim the Self-employment health insurance deduction.

After preparation of the Self-employment return, go to Federal>deductions and credits>deductions and credits>estimate and other taxes paid>Foreign Tax Credit to claim the foreign tax credit.

@Kessler20Wood