Obamacare Insurance

[Snaggletooth]

In the deep recesses of my memory of seminars, it seems I remember that the payment of ACA insurance cannot be used as self-employment insurance as an adjustment. Is this correct?

Thanks in advance

[kathyc2]

This is the 9th year for ACA and 1095A's. How did you handle it the previous 8 years?

[Lion]

You can deduct only out-of-pocket SEHI costs. If premium tax credits are part of the calculation, you have a circular calculation. The IRS offers two options to calculate, but your software should do the math. It's been a long time since I came across that situation, so keep researching.

[Snaggletooth]

You can deduct only out-of-pocket SEHI costs. If premium tax credits are part of the calculation, you have a circular calculation. The IRS offers two options to calculate, but your software should do the math. It's been a long time since I came across that situation, so keep researching.

Thanks. The premium tax credits are a separate issue and are calculated by the software. Good to know the "out-of-pocket" costs are deductible for SEHI. I'm hoping the out-of-pocket costs do not have to be reduced by credits.

I only have a half dozen or so ACA buyers. Mostly people who don't have access to any other medical insurance.

[Lion]

The out-of -pocket costs reduce AGI which alters premium tax credits which alter AGI which... Look at the iterative calculation your software makes (or do it by hand). You can try both options the IRS offers to see if one comes out better. Or, set your software to compare both for you. Check with your software support re how to do the data entry, access the reports, and make the choice.

https://www.healthinsurance.org/faqs...remium-amount/

[Snaggletooth]

Sounds good. Unless the taxpayer makes considerable amount of $$, it is usually going to work out better to take the credit.