Question

Repay health insurance subsidy and self-employed deduction

Forum|Forum|4 years ago
March 20, 2022
1 reply
0 views

According to turbotax, I have to repay subsidy, but this repayment is not reflected in Self-employed health insurance total. This lowers my health insurance deductions. Do I get credit next year or is this an error in turbotax?

TurboTax Home & Biz Windows

G

GeorgeM777

No, you won't get a credit next year. As you may already know, you are repaying part of your subsidy because your income was greater than you had initially indicated and thus, your eligible subsidy was less than what you actually received. Your repayment, plus your premium payments, are all part of your self-employed health insurance costs. When you know what that amount is, your premium payments plus your repayment, enter whatever health insurance amount is missing as a business expense.

If you are using TurboTax online, and the repayment is not already included in your self-employment health insurance costs, you can add it as follows:

If you previously entered info on your self-employment work, select Edit next to the type of work you entered previously. Scroll down to the Expenses section and select Add expenses for this work.
Select Less Common Expenses to show all expense categories. Select Health insurance premiums and select Continue.
On the Tell us about health insurance premiums for your [business] work, enter the total amount of health insurance premiums you paid.

@drosswilk

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A

AmeliesUncle

@GeorgeM777 wrote:
When you know what that amount is, your premium payments plus your repayment, enter whatever health insurance amount is missing as a business expense.

If you are using TurboTax online, and the repayment is not already included in your self-employment health insurance costs, you can add it as follows:

If you previously entered info on your self-employment work, select Edit next to the type of work you entered previously. Scroll down to the Expenses section and select Add expenses for this work.
Select Less Common Expenses to show all expense categories. Select Health insurance premiums and select Continue.
On the Tell us about health insurance premiums for your [business] work, enter the total amount of health insurance premiums you paid.
@drosswilk

No, that is wrong. Due to the circular calculation, right after entering the 1095-A you need to tell the program that it is connected with self employment, and the program should do the calculations and enter them in the right spot.

With that being said, the program tends to be problematic in some situations and gives poor results.