Question

1095 and Traditional IRA deductions exceeding Self Employment Income not caught in Turbotax?

Forum|Forum|2 years ago
February 9, 2024
1 reply
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My 1095 health premiums plus my traditional IRA exceed my 1099NEC self employment income. Turbotax is accepting the excess on schedule 1 and through to the 1040. For example my 1099 shows $16000 (1040 line 😎 and my 1095 plus traditional IRA total $19000 (1040 line 10). Why is Trubotax accepting the $3000 overage and not limiting or warning me that it is exceeding the income? TY.

R

RobertB4444

They are separate deductions. The self-employed health insurance deduction cannot exceed the total amount earned from your business (minus that self-employment tax deduction). The IRA deduction can't exceed the total amount earned. They aren't considered together - neither of the deductions effects the net income from your business. SO you are allowed both.

@DsCarter

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