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.

Self-Employed Health Insurance Deduction and PTC (Premium Tax Credit – Subsidy)
Excerpt from Publication 974  

This section of Publication 974 provides  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

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.

 

This is a quite complicated topic.  Please review the reference material on this page and check with your tax preparer.

Learn more  IRS Pub. #974 Page 56.  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.

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