self-employed health insurance deduction

Forum|Forum|4 years ago
March 17, 2022
7 replies
29 views

Any idea why the self-employed health insurance deduction is reduced when the modified adjusted gross income reaches 401% of the federal poverty level?

ProSeries Professional

This topic has been closed for replies.

rbynaker

Level 13

Did ProSeries cough up a hairball (and leave it lying on the Sch A Medical Wks)?

There are certain circular calculations involving PTC/SEHI that are unsolvable. If a deductible IRA is available I would try plugging some numbers into that to see if the software can find a solution. Unfortunately trial-and-error is the easiest approach, just keep plugging numbers into the IRA box and see what happens.

joshuabarksatlcs

Level 9

Check changes in Form 8962. The changes in premium tax credit and repayment affect the TP's actual health insurance premium. If you link Form 8962 input to SE Health insurance (either Sch C, or K-1 Wages/SE income), the changes in PTC likely would change the SEHI adjustment.

I come here for kudos and IRonMaN's jokes.

W

WY2Author

Level 2

I used link it to sch C , BUT some part of the insurance prems flow to SCH A ,

qbteachmt

Level 15

"I used link it to sch C"

Yes; the business income (disallowing for the SE tax) needs to be high enough to deduct the SE Health. Otherwise, the rest becomes Medical subject to the itemize limit. Link it to Sched C, and any other qualifying form, to get the better benefit.

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