Self-Employed Health Insurance Deduction and Premium Tax Credit
Taxpayer is single shareholder of S Corp that pays for health insurance from ACA marketplace. The health care premiums paid amount of $3,600 is on his W2 and on the 1120S K-1 line 17 other information. His 1095-A shows Monthly Enrollment Premiums of $6,869 and Monthly Advance Payment of Premium Tax Credit of $2,862 and the full amount is greater than his actual premium tax credit of zero, so of course his federal refund is reduced.
Should the SE Health insurance credit be the $3,600 amount from the W2 or should it be the $7,607 amount calculated that I get when I assign the 1095-A to the 1120S form and activity via screen 39.2? The math appears to be Monthly Enrollment Premiums $6,868 - 2,862 (APTC) = 4,007 + W2 amount 3,600. I know you can't double dip but should he get credit on the S/E Health Insurance deduction Schedule 1 line 17 for the 2,862 that he did not have to pay but now has to be paid back?
Thank you
