Still stumped by SE health deduction

[Marie]

My client will not owe SE tax because of insurance deduct. the amount of profit on Sch C shows on Sch SE (before deducting insurance), so line 29 shows health deduct minus 1/2 of what would be SE tax. Put in insurance, no SE tax, but line 29 is still short 1/2 of what would have been SE tax. So, TP still pays income tax on a little SE income, but no SE tax on income. Is this correct? Now, will it efile this way? One guy said to delete SE form, but it changed the amount on line 29 to the full amount of the SE income ( no subtraction for 1/2 of SE tax that isn't there.....) It shouldn't be this difficult. How are others working it. Line 29 same as SE profit, or with subtraction?

[grandmabee]

PUT ON line 29 and also a top of the se schedule. it should flow by itself

[Marie]

Should the ins am't on the top of the SE be the same as line 29, or should the am't on the top of the SE be the total amount of the cost of the insurance (which would be more than SE am't), or should the am't of the ins on the top of the SE be what is on the SE form, (total amount of the profit)? I want to efile this return instead of paper filing.

[taxtrio]

Amount of top of SE should be same amount as line 29 1040 page 1.

The rest flows to sch A.

And you need the SE in the return. Still getting message that SE will most likely reject

due to IRS problem with SE in return that shows under 400.00 of se income...

I have client with BD with this situation. I'm having him pay bal due with extension and I will efile his

return when IRS get's it fixed.... Or you could have them paper file.

ATX is giving a warning (blue notes) when you run check return/efile.

Hope that helps.

Taxtrio

[mcb39]

Should the ins am't on the top of the SE be the same as line 29, or should the am't on the top of the SE be the total amount of the cost of the insurance (which would be more than SE am't), or should the am't of the ins on the top of the SE be what is on the SE form, (total amount of the profit)? I want to efile this return instead of paper filing.

Enter the full amount of the Health Insurance on the top of the SE. If he doesn't owe any SE Tax, then just delete the SE Form to make it e-file.

[LisaAnn]

Enter the full amount of the Health Insurance on the top of the SE. If he doesn't owe any SE Tax, then just delete the SE Form to make it e-file.

I've been seeing the ATX warning about the SE when creating the efile, but I've electronically submitted and everything was fine; ack's were received and returns were accepted.