Self-employed Heath Insurance deduction/Premium Tax credit not calculated correctly

Forum|Forum|4 months ago
February 23, 2026
1 reply
6 views

I have a taxpayer and spouse who both have self-employment income. Their net SE income is $5,430. They had health insurance through the marketplace with total premiums of $14,076, PTC of $3,827. The program is showing SE Health Insurance of $2,004 based on the simplified method but this seems incorrect to me. Wouldn't they be able to deduct $5,430 since their health insurance premiums are over $10,249? The program uses $14,076, less the Advance Premium Credit received of $12,074, but because of their income they have to pay back $8,245 of the Advance Premium Credit. Shouldn't this still count towards the SE Health Insurance deduction?

Lacerte Tax

K

Karl

Intuit Community Champion

What do they separately show as net SE income? Is the SEHI deduction possibly only looking at one Sch (K-1P, Sch F...?) and ignoring the other?

Also, iirc, the SEHI deduction is limited to 92.35% of net income for the 50% SE tax deduction, so maybe that data point will help with tying it out to one of the SE activities?

If that's the case, I'm not 100% sure of the workaround. My two ideas would be to 1) split the 1095-A in half and enter it twice, mapping to difference SE activities, and 2) not map Screen 39 to SE income, make sure nothing maps to Sch A (or use negative inputs/overrides to zero it out on Screens 39 or 25) and use the overrides on Screen 24 for SEHI.

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