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

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.

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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. See here for more information.

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

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

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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.

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Frequently asked questions:

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.

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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.

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