Self-employed insurance deduction under the Affordable Care Act.

• Position: FTB news

For purposes of the self-employed health insurance deduction, California conforms to the federal deduction for self-employed health insurance premiums, including the amount deductible for self-employed taxpayers who are allowed the IRC Sec. 36B refundable credit for coverage under a qualified health plan. California also conforms to the federal amount deductible on Schedule A for any out-of-pocket costs for health insurance paid or incurred by individuals who are allowed the IRC Sec. 36B refundable credit.

Due to the complexity of the Affordable Care Act, some initial draft forms and comments by the FTB indicated that the amount of the federal credit could be deducted from California AGI...