Health Insurance

Reporting health insurance on your federal tax return is generally not necessary. If you received Forms 1095-B or 1095-C, these are informational, and usually don't need to be entered. However, you may need to enter health insurance information in the following situations:

• If you received health insurance from the Federal Health Insurance Marketplace or a state marketplace, enter info from your Form 1095-A here: Menu Path: Deductions/Credits > Health Insurance > Marketplace Health Insurance (1095-A).
• If you're self-employed and made health insurance payments, you can deduct the payments as a business expense here: Menu Path: Income > Business / Rental Income > Business Income (Schedule C).
• If you're a partner who had health insurance and self-employment earnings through a partnership, you can deduct the payments here: Menu Path: Income > Business / Rental Income > Partnership Income (Schedule K-1)
• If you're a shareholder who had health insurance and self-employment earnings through an S corporation, you can deduct the payments here: Menu Path: Income > Business / Rental Income > S Corporation Income (Schedule K-1)

If you're not self-employed, you usually can't deduct health insurance expenses on your tax return. Most people have health insurance as part of an employer-sponsored plan, which already reduces your wages in Box 1 of your W-2 for the health insurance premiums you paid. This is actually a really good thing because your wages are reduced dollar for dollar by any health insurance premiums you pay.

If you're not part of an employer-sponsored plan, or if your health insurance premiums paid did not reduce your wages in Box 1 of your W-2, then you can deduct health insurance payments as an itemized deduction on the Deductible Medical Expenses screen. Medical expenses are very hard to deduct since you need to itemize your deductions and your medical expenses need to be more than 7.50% of your income.

Menu Path: Deductions/Credits > Itemized Deductions > Medical Expenses

What if I don't see the Health Insurance section?