If you get tax subsidies through Covered CA to pay your premium,
the deduction claimed for the premiums under §106  * line 16  and the Premium Tax Credit (PTC)

that gets  computed,
taking the deduction into account, must be less than or equal to the premiums.

Now that’s a mouth full isn’t it!

 

Check out  Publication 974 where there are special instructions for figuring the self-employed health insurance deduction and PTC if you or your spouse was self-employed, you or a member of your tax family was enrolled in a qualified health plan in 2018, and you may be eligible for the PTC.

Because the amount of the self-employed health insurance deduction may affect the amount of the PTC, and the amount of the PTC may affect the amount of the deduction, a taxpayer who may be eligible for both may have difficulty determining the amounts of those items.

A taxpayer who may be eligible for both may follow the instructions in this part to determine amounts of the self-employed health insurance deduction and PTC that are allowable under the law.  Publication 974

Resources & Links

If you earn less than $60k, tax software is available for Free!  

VITA  IRA Volunteer Income Tax Assistance

IRS Publication #535 Business Expenses

What about estimating and uneven income?  Kaiser Foundation FAQ’s.

IRS Pub. #974 Page 56.  Use the Premium Tax Credits  and not the Self-Employed Health Insurance Deduction Worksheet in Publication #535.

Historical Crystal Ball – Guess Work

FinanceBuff.com  based on Revenue Procedure 2014-41.     It’s quite complex and has $10 words that I had to look up, like iterative, which means doing the math over and over.

Bloomberg  says the   entire premium, before the Advance Premium Tax Credit  – Covered CA Subsidies on line 29 form 1040  Instructions   can go on line 29

Zane Benefits says   —  If you received a health insurance tax credit, you would list the actual out-of-pocket cost to you, not including any tax credit received.    See also    Small Biz Tax Credit –  Q & A.

 

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