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Problem deducting Medicare with a small business

Forum|Forum|4 years ago
March 18, 2022
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In Business deductions section of TurboTax, I am not able to enter my Medicare costs in the Less Common Expenses section. When I go to the Self-employed Health Insurance section it doesn't give me the ability to enter a value. It just returns to the business expense section. I did have a small profit. I also tried to enter the Medicare costs directly in Schedule 1 Line 17 and it won't let me input a value (the field is blue, and I cannot enter anything in it). Can someone let me know what I might be doing incorrectly. Thank you.

TurboTax Home & Biz Windows

Best answer by VolvoGirl

Self Employed health Insurance does not go directly on Schedule C so it will not reduce your Net Profit or self employment tax.

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 and the remainder gets added in to medical expenses on Schedule A.

G

GeorgeM777

To enter your Medicare payments follow these steps.

Click on the Business tab
Under Business Income and Expenses, select update or start
If you have already entered some business income or expenses, click Edit to update.
Scroll down the page to the subcategory Business Expenses and select Other Common Business Expenses.
On this page, select Insurance payments. The instructions on this page indicate that Medicare B and Medicare D premiums should be entered here.

@Hank20

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H

Hank20Author

Perfect !!! Thank you.

VolvoGirlAnswer

Employee

Self Employed health Insurance does not go directly on Schedule C so it will not reduce your Net Profit or self employment tax.

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 and the remainder gets added in to medical expenses on Schedule A.