Tax Year Prior to 2020: Health Insurance Deduction for the Self-Employed

[LaughTrack]

I am self-employed and bought insurance for family members.   One of the family members bought insurance on the Obamacare exchange.   My self-employed income exceeds the insurance costs.   No matter what I do, though, the Obamacare insurance shows up on Schedule A and is NOT reducing my self-employment income.   These costs do me no good on Schedule A.   I did characterize them as I was previously instructed, but that didn't change anything.

[MinhT1]

When you have completed entering your form 1095-A, TurboTax will show a screen asking  Let us know if these situations apply to you. On this page, check the box I'm self-employed and bought a Marketplace plan. Click Continue and follow the TurboTax interview.

TurboTax will then transfer the amount you paid adjusted by the extra premium tax credit or the repayment of premium tax credit to Self-employed health Insurance. 

[LaughTrack]

Thanks, but I tried this and it didn't work.   The cost still appears on Schedule A.

I think this is a flaw in the program, not me.

[DoninGA]

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@LaughTrack wrote:

Thanks, but I tried this and it didn't work.   The cost still appears on Schedule A.

I think this is a flaw in the program, not me.

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Did you have a net profit from the self-employment at least equal to the amount of the health care premium payments?  If not, those payments are entered on Schedule A and not an Adjustment to Income.

[VictorW9]

Not sure about the relevance of the insurance you bought for a family member on your own personal taxes. Except that family member is a dependent of yours, then you should ignore whatever you paid for the family member.

If you got your insurance through the market exchange, then you cannot use your health insurance cost as self-employed. You will have to enter your 1095-A which feeds into your form 8962 for the health insurance premium credit.