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March 30, 2024
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Self-Employed Health Insurance Deduction

  • March 30, 2024
  • 1 reply
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I am self-employed in Texas and purchase insurance through the ACA. Why doesn't Turbotax allow me to take the self-employed health insurance deduction on the (significant) portion of my health insurance premiums that I pay for (i.e., that's not subsidized by the ACA)?

    Best answer by VolvoGirl

    You only enter it from the 1095-A. When you enter the 1095A there should be a box to check for self employment. If you enter the 1095-A and select the "Self-employed and bought a Marketplace plan" box, it will automatically include those premiums in the SE Health Insurance section. So you shouldn't enter it again on schedule C.


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


    If it does exceed your net self-employment income it gets split automatically. 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.

    1 reply

    VolvoGirl
    VolvoGirlAnswer
    Employee
    March 30, 2024

    You only enter it from the 1095-A. When you enter the 1095A there should be a box to check for self employment. If you enter the 1095-A and select the "Self-employed and bought a Marketplace plan" box, it will automatically include those premiums in the SE Health Insurance section. So you shouldn't enter it again on schedule C.


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


    If it does exceed your net self-employment income it gets split automatically. 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.

    em_ATXAuthor
    March 30, 2024

    Thank you, @VolvoGirl!