Self-employed health insurance premium override

Forum|Forum|2 years ago
February 27, 2024
2 replies
13 views

In prior years Lacerte had an input box on Adjustments Screen 24 under SE Health Insurance for SE health deduction Override. This input box has disappeared from the 2023 Lacerte Individual Tax Program. Does anyone know why and how to work around this? Or is it a Lacerte programming error?

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Best answer by bnb

We talked to Lacerte and there is no override for SE health insurance this year. Their solution was to enter the amount of wage and housing allowance on Adjustments Screen 24 as Net Earning Adjustments, Net profit of business under which plan is established. This generates the premium deduction on Line 1 of Form 7206, but I don't think that's right. Line 1 is for the "total amount paid in 2023 for health insurance coverage established under your business". These were Medicare premiums and the minister doesn't have a "business" per se. There is no line on Form 7206 that is specific to ministers.

sjrcpa

Level 15

Why do you need to override?

The more I know the more I don’t know.

B

bnbAuthor

Level 3

I have a minister's wages and housing allowance that are self-employment income subject to SE tax.

B

bnbAuthor

Level 3

The minister has self-employed health insurance premiums and no business to tie them to. I've tried entering Net Earnings from self-employment but that didn't help. The diagnostic says the deduction was disallowed because the taxpayer has no self-employment income.

T

TaxGuyBill

Level 15

Is there a screen for Form 7206?

The Self Employed Health Insurance deduction changed this year from being calculated on a worksheet to being on Form 7206. I'm wondering if Lacerte moved it.

B

bnbAuthorAnswer

Level 3

We talked to Lacerte and there is no override for SE health insurance this year. Their solution was to enter the amount of wage and housing allowance on Adjustments Screen 24 as Net Earning Adjustments, Net profit of business under which plan is established. This generates the premium deduction on Line 1 of Form 7206, but I don't think that's right. Line 1 is for the "total amount paid in 2023 for health insurance coverage established under your business". These were Medicare premiums and the minister doesn't have a "business" per se. There is no line on Form 7206 that is specific to ministers.

T

TaxGuyBill

Level 15

I am looking at your question a bit closer and am wondering if anything needs to be done at all. But I DON'T do minister returns, so I could be completely wrong.

Isn't a minister an employee for income tax purposes (and self-employed for purposes of Social Security and Medicare tax)?

The Self Employed Health Insurance deduction is only for income tax purposes. As an employee for income tax purposes, you shouldn't even enter health insurance, should you?

But as I said, I don't do minister returns, so I could be completely wrong.

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