Where do I enter my health insurance premiums in TurboTax CD/Download Home & Business if I'm self-employed?
Any Health Insurance Marketplace premiums you paid will be reported on Form 1095-A, which you should get by mid-February. Once you have it, simply follow these directions to enter your 1095-A in TurboTax.
If you paid COBRA premiums, and the policy is in a former employer's name, enter it as a personal medical expense (on the Enter Insurance Premiums screen which is near the end of the medical expenses interview).
For all other self-employed health insurance premiums, follow these steps. You'll need to be in the Home & Business version:
- Open your return and select the Business tab.
- Continue to How do you want to enter your business income? and select I'll choose what I work on.
- In the Business Income and Expenses section, Choose Update (or Start) next to Profit or Loss from Business.
- If this is your first time entering info on your business, you’ll be asked some general questions. You’ll then come to the Your (Type of Work) Business screen. Scroll down to the Business Expenses section and select Start or Update next to Other Common Business Expenses. Then select Start next to Insurance Payments and follow the screens.
- Choose Edit next to your (Type of Business) .
- In the Business Expenses section, choose Start (or Update) next to Other Common Business Expenses.
- Now select Start next to Insurance Payments and follow the screens.
As a self-employed person, you may be eligible to deduct health insurance premiums for yourself, your spouse and your dependents. This write-off for health insurance is entered on page 1 of Form 1040.
Keep in mind that you’re only eligible for claiming the write-off for health insurance premiums during the months when you are not eligible to participate in any employer-subsidized health plan. This is known as the month-by-month eligibility rule.
If your self-employment activity is a sole proprietorship that generated a tax loss for the year, you’re not allowed to claim the deduction because your deduction can’t exceed the earned income you collect from your business. This is known as the earned income limitation rule.
If you have partners and LLC members who are treated as partners for tax purposes, and you directly pay your own health insurance premiums, you can claim the page 1 deduction. Even if the partnership or LLC pays the premiums, you can still claim the deduction for premiums paid for your coverage, but special tax reporting rules will apply to the partnership’s or LLC’s return. In both cases, the deduction will be subject to the month-by-month eligibility rule and the earned income limitation rule.