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

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.

What's new for the Self-employed health insurance deduction for tax year 2023:

Starting in tax year 2023 the IRS has released Form 7206 to calculate the Self-employed health insurance deduction for the 1040. In tax years 2022 and prior, the IRS used the Self-employed health insurance deduction worksheet from the 1040 instruction booklet to calculate the allowable deduction on the 1040.

Indicating the 1095-A is for a Self-employed health insurance deduction

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.

Related topics

• Form 1040 self-employed health insurance FAQs for ProConnect Tax