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Re deductions for SE-Medical Insurance Obamacare 2015 and Premium Tax Credit

November 27, 2016 • Marco Ahtirski • Log In to Post Comments

Client self employed filing dschedule "C", owned 50% for each, splitting schedule "C", had health insurance,received 1095 A, in Lacerte when I keyed in the info, not linking the medical insurance to the schedule "C" it gives a higher deductions for line 29 for $10,945 on 1040 and a higher credit for form 8962 for $4083, it also effects the line 37 reducing the AGI

When linked to schedule "C" the deductions for line 29 is only $ 7418 and a lower credit for form 8962 for $3563 and an increase for line 37 AGI. 

1095 A was only for both taxpayers under their personal names and SSN

Which is the correct way to figure this adjustment. How does the IRS verifies that the form 8962 is correct, from form 1095 A or from the S E Income only for the business.

Thank you





The amount you can deduct above-line is the net amount you pay for health insurance after any PTC. The amount of PTC you can get is based on AGI. So, there is a circular computation. The deduction you get is changed by the amount of PTC and the amount of PTC is changed by the deduction. The IRS has provided computation methods. See IRS Pub. 974, page 50.


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