Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

Posts: 1
Registered: ‎03-10-2018

H&R won't allow full adjustment for self employed health insurance

I'm trying to file using H&R Free File and I noticed the income adjustment for my self employment health insurance is not 100%. I'm confused, last year it was an above the line adjustment to my income for the full amount paid - this year it's only calculating at 33% what I paid for health insurance. There doesn't seem to be a way around this - any ideas?  I change from itemized to standard deduction and that didn't work. Very frustrating.  


Thanks in advance for any help! 

Valued Neighbor
Posts: 149
Registered: ‎04-06-2016

Re: H&R won't allow full adjustment for self employed health insurance

If you bought your insurance through the marketplace and received/are receiving premium tax credits, the amount listed as an adjustment for SE health insurance will be reduced by the amount of premium tax credits (PTC) you're being given.  Check form 1040 line 69 and see if the difference between what you paid and what's being reported as an adjustment is reported on that line. If it is, then you're all set.  It's reducing your adjustment because you were eligible for a premium tax credit that you hadn't already taken. This credit will effectively reduce the amount you have to pay for the insurance and the amount you're eligible to claim as an adjustment.  (You can only take the adjustment for what you ended up paying-- not the full list cost of the insurance if you took APTC or are getting PTC on your return.)


I have noticed a bug in the way the program is making the calculations for the SE health insurance deduction and the PTC when AGI is near the cutoff for premium tax credit subsidies (400% FPL), but if the difference between what you paid and what is being reported as an adjustment is the amount of the tax credit you're all set. If the difference is showing up as a medical expense deduction under itemized deductions, the program is calculating things incorrectly and you'll likely have to override values unless H&R block fixes the issue.