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Entering self-employed health insurance deductions in ProConnect

SOLVEDby Intuit48Updated over 1 year ago

Self-employed health insurance premiums paid that aren't reported on Schedule C, can be entered in Form 1040 in ProConnect Tax.

Follow these steps

  1. Go to Input Return.
  2. Select Deductions from the left menu.
  3. Select Adjustments to Income.
  4. Go to the Health Insurance tab.
  5. Locate the field Premiums not entered elsewhere (excluding long-term care).
  6. Enter self-employed health insurance premiums paid that aren't reported elsewhere.
  • ProConnect 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.
    • ProConnect carries the limited amount to Form 1040 and carries the total premium entered (less the limited amount) to Schedule A as a medical expense.
      • To override this calculation, make an entry in SE Health Insurance Deduction [Override].
  • ProConnect 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 override input fields.
  • ProConnect doesn't calculate the deduction when the taxpayer has net earnings and gains (other than capital gains) from disposition, transfer, or licensing of property. You must manually calculate the allowable deduction and enter it in the override input field.

If long-term care plans are established under the taxpayer's or spouse's business, and long-term care premiums were paid for persons other than the taxpayer or spouse, manually limit the premiums paid for the other person(s) based on age, per IRS Pub 525, and include the amount in this input field.

  1. Go to Credits in the left menu.
  2. Select Recovery Rebate, EIC, Residential Energy, Oth Credits.
  3. Go to the Health tab.
  4. Enter the amounts in the field Qualified health insurance premiums.
    • If the taxpayer isn't eligible to claim the credit, the premiums will be carried to the self-employed health insurance deduction or Schedule A as a medical expense, whichever is applicable.

When taxpayers receive wages from an S corporation where they were more than a 2% shareholder, you can enter the self-employed health insurance either in this field, or directly in Income, S-Corp Info (1120S K-1), Line 17 - Other Information section, Self-employed health insurance premiums field.

The wages entered in Income, Wages, Salaries, Tips (W-2), must also check the box More than 2% shareholder in S corporation in the Wages, Salaries, Tips (W-2) input, Other Information, Miscellaneous Information.

Related topics

How does the program calculate form 8962 with the self employed health insurance deduction?
Form 1040 Self-employed health insurance FAQs
Entering self-employed health insurance premiums from S Corporation K-1

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