Question

Medical Worksheet for Schedule A

Forum|Forum|6 years ago
January 29, 2020
1 reply
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My question pertains to the Schedule A Medical worksheet calculation. Here is some info. I'm a retired Federal employee and receive a pension. The 1099R is a CSA 1099R. The 1099R reflects my Health insurance costs and that I participate in a Employer-sponsored program. However, the health insurance payments that I make are NOT pretax. The health insurance amount in box 5 is $6982.

After I retired I started a small business. I am doing a Schedule C. My net profit is $4842. Of the $6982 health insurance cost, $4842 is used as an adjustment to income on my Schedule 1 and is reflected on the 1040 as a reduction to taxable income.

The medical worksheet reflects the health insurance remainder of $2140, the portion that was not included in the income adjustment.

Here is my question. The medical worksheet also reflects my full health insurance cost of $6982 and is included in the medical deductions calculation. I don't think that it should be. Can anyone provide an answer?

TurboTax Home & Biz Windows

K

KarenM90

Correct! Based on the circumstances you have indicated it would be correct for the health insurance cost to be reflected as an income adjustment (as limited by your small business income) of $4842. The remainder of the deduction would be correctly reflected as a Schedule A, medical expense of $2140.

You will need to delete the full insurance cost of $6982 that is being erroneously included in the medical deduction calculation, as you cannot deduct the full amount in both since it is already included as a self-employed health insurance deduction.

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