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Calculating form 8962 with a self-employed health insurance deduction in ProConnect Tax

SOLVEDby Intuit10Updated November 29, 2023

For tax years 2023-2025:

Taxpayers with a household income that exceeds 400% of the federal poverty line for their family size may be allowed a PTC. For more information, click here.

If Form 8962 is generating with a Premium Tax Credit and you have a self-employed health insurance deduction on Form 1040, Schedule 1, line 16, ProConnect Tax will calculate your deduction and credit.

  1. Go to the Input Return tab.
  2. Click on the Credits section on the left-hand side of your screen.
  3. Scroll down and select Premium Tax Credit (1095-A, 8962).
  4. Click on Form 1095-A - Health Insurance Marketplace Statement.
  5. Scroll down to the SE Health Insurance section.
  6. Select the applicable form in the field Form (Click on arrow to select from list) from the dropdown menu.
  7. Select the applicable Activity name or number from the dropdown menu.
  8. Enter the Related activity start month (if applicable).
  9. Enter the Related activity end month (if applicable).

Entering amounts in Adjustments to Income

  • If the amount of SE Health Insurance deduction entered in the screen Adjustments to Income (under the Deductions section) is the same amount entered in the screen Form 1095-A - Health Insurance Marketplace Statement, you'll need to remove the amount from the Adjustments to Income screen before completing the steps above.
  • Only enter in the Adjustments to Income screen those premiums not entered elsewhere.

How is the program coming up with the amounts for the SE Health Insurance Deduction and PTC?

The basic rules are to reduce the SE Health Insurance Deduction by the PTC amount so the return isn't doubling the deduction and to reduce the premiums paid by any advanced payments. You may use any calculation method you like that satisfies the requirements of the tax law.

Why are the amounts different on the return after a recent update?

The program has a Self-employed Health and Premium Tax Credit Reconciliation worksheet that shows the calculation on Schedule 1, Line 17. This calculation shows how the program is coming up with the Health Insurance Premiums on line 1 of the worksheet.

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