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Self-Employed Health Insurance Deduction vs. form 1095-A entries

Forum|Forum|6 years ago
June 7, 2019
19 replies
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NOTE: I submitted this query in 2016. It's no longer relevant as the process with TurboTax has changed. Read on if you wish, but no need to come to my rescue as the issue is no longer an issue.

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Do I enter Health Insurance Premium payments in the expenses section of Schedule C (for self-employed health insurance premium deduction) if I already entered data in the Personal section (Health Insurance purchased through Marketplace - with data from form 1095-A) ?

The instructions in the schedule C business expense section say:
Do not enter premiums you paid for your employees or premiums paid through Healthcare.gov or your state market place or exchange.

All I know is I mailed a monthly payment to the state, but my rate reflected a monthly advance payment of premium tax credit.

I don't want my entries to be redundant as a result of entering things in two sections.

TurboTax Self Employed Online

Best answer by buck1400

You are correct to enter the health insurance premium information from your 1095-A in the Personal > Health Insurance section in TurboTax. This is information will be used in Form 8962 to determine any adjustment needed in the premium tax credit your received. Form 8962 Line 26 will show the resulting over/under tax credit and be transfered to your 1040 Line 69.

Since you self-employed, you are also permitted to deduct your portion of the health insurance premiums (total premium minus the premium tax credit your are permitted) as a business expenses. TurboTax will compute this amount and enter it on 1040 Line 29. If no amount amount is showing up on 1040 Line 29, go through the Personal >Health Insurance section again making sure to answer the question about being self-employed AND selecting the Schedule C to which you want to attach the deduction. When you are stepping through the questions, you have to click on "edit" when you get to the 1095-A data screen. The self-employment question is on the page after you have reviewed your 1095-a entries.

mrpoohAuthor

NOTE: I submitted this query in 2016. It's no longer relevant as the process with TurboTax has changed. Read on if you wish, but no need to come to my rescue as the issue is no longer an issue.

K

kellyafitz

Please if you will, what's changed? I am also self-employed. I purchase my health insurance through the Exchange even though I don't qualify for a subsidy. It doesn't appear as though TurboTax is automatically including my premiums from the 1095-A to the Self-Employed health insurance section.

2

24x

Employee

Turbotax called me last week saying that there is a whole team working on this issue (bug). Hopefully I will hear back with a solution to the problem soon.

24x, thank you!

Is there any update on this bug? Having the same issue!

K

kellyafitz

domokun, it DID eventually work. (I think). I just had to make sure I checked the box, "Self Employed and bought a Marketplace plan" in the Schedule A. In addition I clicked on my specific business in the"Income from my business or self-employment" part. This transferred my premiums to the Self-Employed Health Insurance Premiums.

Go to the Personal Section then Health Insurance. Answer the questions and you'll come upon the parts I mentioned above.

I got it! Thank you.

I've entered the 1095-A and linked it to our S-Corp as per the comments in this thread, but the difference between premiums paid and the premium tax credit are flowing to my Schedule A as an itemized deduction rather than 1040 Line 29 Self-employed health insurance deduction. I even deleted the 1095-A, re-entered it, and linked it to the S-Corp, but am getting the same results. Is there a way to force the premium difference over to 1040 Line 29? Or, is there something I'm missing that's causing them to flow to Schedule A? Looking for ideas.

2

24x

Employee

Turbo tax people told be that there was a whole team working on this 'bug'. That was well over a month ago. I am sorry to hear that they have not fixed the problem yet! Meantime, I manually adjusted most of the entries on my tax return to get the full premium deduction as I am supposed to. It was a huge pain! I think this problem is only happening when AGI minus Heath Insurance Premiums are less than the Obama Care threshold for AGI. In other words if the AGI exceeds the threshold by the amount of the Health Insurance Premiums Paid then the full deduction is showing up on 1040 line 29 as it should (at least it was in my case).

B

bart1

Thank you for your quick reply!

I need to make a correction, because I found a box that should have been checked, but wasn't. It's on the Other Situations screen of the K-1 entry sequence. It reads:

"I personally paid health insurance and/or long-term care insurance premiums for myself and my family and this S corporation paid me wages."

Check it, and follow the instructions carefully. Premiums don't go in this section if you reported them on a 1095-A, but W-2 wages do. Once this section was filled out properly, the app put the correct amount on 1040 Line 29.