Question

Independent contractor health care deduction

Forum|Forum|6 years ago
March 15, 2020
1 reply
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Hi, Independent contractor for whole year, got health insurance through state exchange and recieved a 1095-A. Turbo Tax says not to enter premium in the self employed health insurance section, it goes under personal deductions and credits/medical/ 1095-A. I checked the self employed and bought a marketplace plan. When I go this way it does not give me the premium deduction, which I also need to get my AGI low enough to qualify for a subsidy. What am I missing? Any repy appreciated. Thanks

M

MAK70

You cannot use the Self-Employed Health Insurance (SEHI) Deduction to reduce the self-employment income in order to qualify for the subsidy- however, TurboTax will use the entry in the 1095-A section to determine the best tax scenario. It uses the information for SEHI calculations

S

ScanmanAuthor

Thank you Mary for the answer. Understand the subsidy end of your answer but still don’t know why it is not allowing me to take the premium deduction. Earned around $11000,premium was $19000.

T

ThomasM125

The premium subsidy is a benefit that lowers your insurance cost. You cannot use the subsidy to lower your insurance cost and at the same time use the premiums as a deduction to lower your taxable income. Based on your form 1095-A entry in TurboTax, the program will determine the amount of your premiums you can use as a deduction of your taxable income, if any.

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