MontanaEA Posted January 5, 2011 Report Share Posted January 5, 2011 IRS Sch SE instructions say to deduct it on line 3, but software doesn't seem to offer spot for it on the line 3 worksheet, or as an automatic deduction to line 3. What am I missing? Quote Link to comment Share on other sites More sharing options...
OldJack Posted January 6, 2011 Report Share Posted January 6, 2011 You deduct it on 1040 at the bottom of page 1 on a line in the adjustment to gross income section. See the worksheet on page 30 of the 2009 1040 instructions. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 6, 2011 Report Share Posted January 6, 2011 IRS Sch SE instructions say to deduct it on line 3, but software doesn't seem to offer spot for it on the line 3 worksheet, or as an automatic deduction to line 3. What am I missing? I have been watching the form since school in Nov and I have not seen it change yet. I don't think the form is ready. Somehow, it is supposed to be deducted on the SE. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted January 6, 2011 Report Share Posted January 6, 2011 You deduct it on 1040 at the bottom of page 1 on a line in the adjustment to gross income section. See the worksheet on page 30 of the 2009 1040 instructions. Old Jack, This is something new for this year. In the past we deducted what we paid for self-employed health insurance on page 1 of the 1040, however this year we are suppose to be able to deduct it from self-employment taxes as well. Anyhow that has been my understanding. I was hoping someone would ask this question as I have looked and even ran some dummy figures to see if the worksheet flows over to the schedule SE but I don't see how this works either. If anyone knows please let the rest of us know! Thanks, Deb! Quote Link to comment Share on other sites More sharing options...
Joel Posted January 6, 2011 Report Share Posted January 6, 2011 Apparently ATX has not yet updated the SE form to comply with the IRS version on line. The instructions on the IRS website for line 3 of the SE say to subtract the 1040 line 27 (self employed health care) amount from the income on line 2. I noticed that the TRX program has included the proper instructions and calculations. Quote Link to comment Share on other sites More sharing options...
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