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I am self-employed and deduct my health insurance premiums (line 29, Form 1040). Last year I received a health insurance premium rebate check. I know this is to be treated as income for this past year, but I am not sure where to put this on my 2012 tax forms. Is it "Other income" Line 6 on Schedule C? I know a tax preparer who is simply subtracting the amount of the rebate check from the 2012 premiums paid. Is that OK?

I am using TurboTax and there was no explicit guidance about this. Other TurboTax users have posted this question, but I haven't seen it answered.

Can anyone help? Thanks in advance.
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Because you deducted your prior year health insurance premiums as a self-employed person, I'd include this rebate as income on line 21 (other income). I'm sure it does not go on schedule C, as it was never deducted there.

From a bottom line perspective, you get exactly the same result if you include it on line 21 or if you deduct it from the current year premiums. I simply prefer the better disclosure to the IRS of the rebate by putting it on line 21.


PS - For lurkers, you get a somewhat different answer if you are not self employed. I'd still put it on line 21, but only to the extent you were able to deduct the premium on Schedule A in a prior year.
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Thanks for your help! That makes sense to me.
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