Medical Insurance Applied to Schedule C Question

[JohnASmith]

After an explanation, my question will be about deducting medical insurance premiums when filing with a schedule C.  My son’s business was very slow in 2022 so he, and his family, qualified for subsidized medical insurance via the California Marketplace.  It only cost him about $200 month for a $1,000 a month valued policy. He had a fantastic turnaround the second half of 2023.  The understanding is that he reimburses the system via the IRS since his subsidy is adjusted, or eliminated, based on his income.  Fair enough, no problem with that.  TurboTax came up with $9,600 and added it to his 1040.  Fortunately, he has enough on deposit to cover the entire amount.  Now my tax question:  The reimbursement amount is $9,600.  He already paid, out of pocket, about $2,400 that was his share of the policy which he has included in his 2023 Schedule C.  He is still on extension so that is still adjustable.  Since the $9,600 pays for a policy that was active for 2023, and technically was paid for in 2023, can he now add that cost to his 2023 return? I can’t imagine how it could be applied to 2024.  Input appreciated, thank you.

[Bsch4477 · Accepted solution]

Yes, those premiums are deductible for the self employed. That issue was discussed here. 

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/turbo-tax-self-employed-health-i...

[JohnASmith]

Thank you.  That link covered my question and explained how to associate the 1095-A with a schedule C.  It's not very obvious being at the very bottom of the worksheet.  Also, not just a checkbox, a bit more involved.   Thanks again, your help is very much appreciated.