If you get tax subsidies through Covered CA to pay your premium,
the deduction claimed for the premiums under §106 line 29 and the Premium Tax Credit (PTC) computed,
taking the deduction into account, must be less than or equal to the premiums.

Learn more  IRS Pub. #974 Page 50.  Use the Premium Tax Credits  and not the Self-Employed Health Insurance Deduction Worksheet in Publication #535.

Resources & Links

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

IRS Publication #535 Business Expenses

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


Self Employed Deduction and Covered CA Subsidy
Self Employed Deduction and Covered CA Subsidy Publication 974 Page 50
Tax Guide for Small Business Publication 334
Tax Guide for Small Business Publication 334

Main Small Biz Tax Credit and Related Pages

Health Insurance Deduction Line 29  for self employed

Schedule C – Line 12 Biz Income or Loss,  Line 29 Health Insurance Premiums,  Line 37 Adjusted Gross Income,   MAGI Income

Home Office Deduction

Self Employed Deduction for S Corp Owners

Details on Obamacare Subsidy and Line 29 deduction

Premium Tax Credit # 8962

Health Coverage Tax Credit #8885

Form 1040 and Instructions

Self Employed – New Definition under Health  Care Reform – Introduction

AB 1672 – (1992 to 2013) Small Group Health Rules prior to Obamacare

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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