Question

ACA medical deduction not reducing self-employment income

Forum|Forum|1 year ago
March 15, 2025
1 reply
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My husband has health insurance through his company, so I entered his premiums that he paid on Schedule A.

I have health insurance for myself and my son through Covered California. I have W-2 income as well as self-employment income. I'm trying to reduce my self-employment income to zero, by applying a portion of my health insurance premiums to Schedule C, and the remainder going to Schedule A.

In years I didn't have Covered California, this happened automatically. This year it's not working. Turbo Tax is applying the entired amount I paid to Schedule A, and I'm paying tax on my self employment income.

I entered the premiums on the Affordable Care Act schedule - but it doesn't indicate that I am paying the premiums. It doesn't ask if the ACA is for myself or my husband.

Any help would be greatly appreciated.

M

MAK70

Unfortunately, you cannot claim self-employed health insurance for the months that you or your spouse has health coverage available through an employer. See Deducting Health Insurance Premiums If You're Self-Employed.

M

mweizAuthor

Just to be sure I understand - I never had health insurance through my employer, but because my husband did, I can't deduct what I paid via ACA from my self employed income?

M

MayaD

That is correct.

To qualify, you need to meet all of the following criteria:

You make a net profit, meaning you generate an income and do not operate at a loss.
You don’t have other health insurance options. In other words, you can’t use this deduction if you are eligible for coverage through your or a spouse’s employer.