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

Forum|Forum|7 years ago
June 7, 2019
97 replies
595 views

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.

TurboTax Self Employed Online

Best answer by buck1400

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.

Show previous replies

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cmdv

Level 2

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!

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24x

Level 2

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!

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bart1

Level 2

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

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24x

Level 2

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.

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bart1

Level 2

You would think they could apply that section to all of the scenarios listed in the IRS instructions. There are several, and S-Corps are even toward the bottom of the list. Maybe Intuit needs some more prodding!

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cmdv

Level 2

I saw a comment above that we are a very small segment of the population? (Those who are getting 1095A forms) NO EXCUSE!! I guess my particular situation is not very many people at all..... that's proably true. I had some subsidy AND a conflict with the 1095 B that shows some of the same months as being covered... and now- there's a refund from Anthem? ( april 2018 re 2017 actual premium paid) OMG it is messy and Turbo Tax is not helping.

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buck1400Answer

Level 2

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.

mrpoohAuthor

Level 3

Thanks for taking the time to answer my question.  I just spoke with someone at TurboTax who also confirmed this.

Like you wrote, the idea is to just enter my info in the 1095-A section (Personal > Health Insurance) and TurboTax  ("knowing" that I'm filing as a self-employed business) automatically transferred that info correctly into the appropriate line on form 1040 (line 29) for the Self-employed health insurance deduction.

Mystery solved.  Of course it makes sense, and there were even instructions, but I wanted to make sure.

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barbaralong1

Level 2

Thank YOU!! I was driving myself crazy trying to figure out where that business calculation for health care tax credit came from. I must have spent 2 hrs searching.

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tashamail

Level 2

I did what was suggested in the answer above, and Turbo Tax "processed" for about 30 minutes without stopping. I finally shut it down and when I turned it back on, all the data I entered about my 1095-As (I have 3 of them) seems to have vanished. Now when I work on the health insurance section of the Personal tab, it does not give me any options for entering 1095-A data - it takes me directly to the screen that says "done with healthcare." I tried going in through the Schedule C form, and it let me "quick zoom" to enter one 1095-A, (forced me to fill out every bit of it - unlike the process via Personal<heath Insurance - but now it won't let me back in that way to add the other two (the first one covered only January and part of February). It instead now takes me to Self Employed health insurance and long term care worksheet, which tells me not to enter anything I already entered on a 1095-A! This is SO frustrating! Anybody have a fix?

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marksja

Level 2

I have not been able to find an answer to this question, and would appreciate any help very much...

On the 1095-A - can the monthly SLCSP amount change? The reason I ask is that when I signed up for my Market Place insurance for 2022, a specific SCLSP value was used to calculate my APTC. I noticed that the SLCSP amount changed throughout 2022. Will the 1095 I receive in January show these different amounts, or will it use the amount that was used to calculate my APTC? Not a big deal on my taxes, but it will make a difference. Thanks in advance for any help on this!

Critter-3

Level 15

On the 1095-A - can the monthly SLCSP amount change? Yes that is common.

The reason I ask is that when I signed up for my Market Place insurance for 2022, a specific SCLSP value was used to calculate my APTC. I noticed that the SLCSP amount changed throughout 2022. Will the 1095 I receive in January show these different amounts Yes it will and this is normal.