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Common questions about SE Health Insurance in Lacerte

How to enter the deduction in tax year 2023:

Go to Screen 24, Adjustments to Income.
From the Sections select SE Health Insurance (7206).
Enter the Premiums not entered elsewhere (excluding long-term care) (taxpayer code 16, spouse code 66).
Under the Long-term Care Premiums subsection, enter any applicable amounts in the corresponding fields.
- Premiums paid for self-employed person (taxpayer code 26, spouse code 76)
- Premiums paid by the taxpayer (code 34)
- Premiums paid by the spouse for the taxpayer (code 84)
Complete the Form and Activity Name or Number subsection.
To make adjustments to the deduction use the Net Earning Adjustments subsection.
- The override for SE Health Insurance Deduction is no longer available.

How to enter the deduction in tax year 2022 or prior:

Open Screen 24, Adjustments to Income.
In the Section list, click SE Health Insurance.
Enter the taxpayer's and spouse's self-employed health insurance premiums (excluding long-term care premiums) in Premiums not Entered Elsewhere (Excluding Long-term Care).
If the taxpayer receives a K-1 from an S corporation, has income excluded from sources within Puerto Rico, files Form 2555 or Form 4563, or claims a net operating loss deduction and qualifies for the self-employment health insurance deduction, enter the allowable health insurance deduction in SE Health Insurance Deduction [O].
Enter the self-employed health insurance relating to long-term care premiums in Long-Term Care Premiums.

Lacerte limits this health insurance deduction to the lesser of the total premiums entered, or the net earnings from self-employment minus qualified retirement plans and one-half of the self-employment deduction on Form 1040.
- To limit the deduction based on the net income of a single business activity, you must indicate the form and activity name or number.
- Lacerte carries the limited amount to Form 1040 and carries the total premium entered (less the limited amount) to Schedule A as a medical expense.
Lacerte doesn't limit the deduction when Form 2555 or Form 4563 is needed. When income is excluded from sources within Puerto Rico, or when the taxpayer claims a net operating loss deduction; if any of these situations apply, use the adjustment fields.
Lacerte doesn't calculate the deduction when the taxpayer has net earnings and gains (other than capital gains) from the disposition, transfer, or licensing of property. You must manually adjust the calculation with the adjust fields.

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