Is 1095 Marketplace costs deductible for the SE?

[SensibleandHourly]

Good morning, Community, 

I'm very sorry if this is a duplicate post but I can't seem to find the original. 

In a nutshell, if my self-employed day care client purchases health insurance through the marketplace, is that deductible on Schedule 1 rather than personal itemizing? It seems from my reading that Schedule 1 is the proper way for SE health insurance premiums but I'm not sure how to make that happen and/or if purchasing through the marketplace negates that benefit? 

Also, if it matters, client is MFJ, but spouse's insurance is through Medicare. 

Thank you, and hope everyone has a marvelous day!

Dawn

[Just-Lisa-Now- · Accepted solution]

At the bottom of the 1095A entry sheet you can link it to the Sch C.  The program will do the rest.

[Terry53029]

Also be aware that since 2012, the IRS has allowed self-employed individuals to deduct all Medicare premiums (including premiums for Medicare Part B – and Part A, for people who have to pay a premium for it – Medigap, Medicare Advantage plans, and Part D) from their federal taxes, and this includes Medicare premiums for their spouse.

[SensibleandHourly]

Thank you, I did not know you could deduct the spouse's Medicare premiums, that will be fabulous for these clients.  Does that amount get put on Schedule C, line 15 rather than the Schedule 1? 

[Terry53029]

Yes schedule C line 15 in the box for self employed health insurance. Do not put any amounts from the 1095A. As Lisa said just link to schedule C on the 1095A.

[SensibleandHourly]

Many thanks!

[sjrcpa]

Health insurance premiums for this spouse of a sole proprietor do not go on Schedule C Line 15.

They go on Schedule 1 Line 17.

EDIT: I guess I misunderstood Terry. They reference a self-employed health insurance field for ProSeries,

[SensibleandHourly]

HI there, just checking, you would concur with Terry that Medicare premiums for a spouse are deductible through the business owner's portion of the return? But that Schedule 1 is the appropriate place to input rather than Schedule C? 

[sjrcpa]

yes

[Just-Lisa-Now-]

I put them on that SEHI line below Line 15 on the Sch C, Im not sure you can input direct to Sch 1.

[Terry53029]

@sjrcpa in ProSeries Pro you do not put directly on schedule 1, because there is a box to put them in on the schedule C

[sjrcpa]

Thanks. I don't use ProSeries and was confused.