Updated November 4, 2026. Quick answer: Worksheet W in Publication 974 (2025) is the IRS calculation of the most you can deduct as self-employed health insurance for specified premiums, the premiums for a Marketplace plan in the months you were self-employed. It subtracts the advance premium tax credit paid for you from the premiums, caps the result at your net earnings from the business, and hands line 16 and line 19 to Worksheet X.
Pub 974 worksheet walk-throughs: Pub 974 Step 3 and Step 5 Worksheets.
When Worksheet W applies
The publication puts Worksheets W and X after Worksheet P: “Then, complete Worksheet W and Worksheet X.” The rule on X is “You have to complete Worksheet X only if APTC was paid to your insurer on your behalf for the months you were self-employed.” Worksheet W is skipped when “You completed Worksheet P and line 2 is less than or equal to line 1.” The first sheet of the series is Worksheet P. The Form 8962 instructions point to this publication: “If you are claiming the self-employed health insurance deduction, see Pub. 974.”
Lines 1 to 3, the premiums
| Line | What it asks |
|---|---|
| 1 | “Enter your specified premiums.” The publication defines them: “Specified premiums are the premiums for a specified qualified health plan or plans for which you may otherwise claim as a self-employed health insurance deduction on line 17 of Schedule 1 (Form 1040).” |
| 2 | “Enter the APTC from Form 1095-A, Part III, column C, that is attributable to the premiums on line 1” |
| 3 | “Subtract line 2 from line 1” |
If you were self-employed for only part of the year the rule is “If you were self-employed for part of a month, the entire premium for that month is a specified premium.” The column C amounts are explained on the Form 1095-A column C page.
Lines 4 to 13, the earned income limit
| Line | What it asks |
|---|---|
| 4 | “Enter your net profit” and other earned income from the business under which the plan is established. “If the business is an S corporation, skip to line 11” |
| 5 | “Enter the total of all net profits” from Schedule C, Schedule F or Schedule K-1 (Form 1065) box 14 code A, “Do not include any net losses shown on these schedules” |
| 6 | “Divide line 4 by line 5” |
| 7 | “Multiply line 15 of Schedule 1 (Form 1040) by line 6” |
| 8 | “Subtract line 7 from line 4” |
| 9 | “Enter the amount, if any, from line 16 of Schedule 1 (Form 1040) attributable to the same business for which the qualified health plan is established” |
| 10 | “Subtract line 9 from line 8” |
| 11 | “Enter your Medicare wages (box 5 of Form W-2) from an S corporation in which you are a more-than-2% shareholder” |
| 12 | “Enter any amount from Form 2555, line 45”, and the sheet adds “If you are not filing Form 2555, enter -0-.” |
| 13 | “Subtract line 12 from line 10 or line 11, whichever applies” |
A filer with more than one business is told “complete lines 4 through 13 separately for each trade or business. Add the amounts on line 13 for all the trades or businesses.” Then “complete lines 14 through 17 once for all trades or businesses.” Net earnings from the business come from Schedule SE lines 1 to 4.
Lines 14 to 19, the result
| Line | What it asks |
|---|---|
| 14 | “Enter your self-employed health insurance deduction for nonspecified premiums from Worksheet P, line 3, or Form 7206, line 14” |
| 15 | “Subtract line 14 from line 13” |
| 16 | “Enter the smaller of line 3 or line 15” |
| 17 | “Add lines 14 and 16” |
| 18 | “Is line 2 blank or -0-?” If yes, “Skip line 19 and Worksheet X.” If no, go to line 19. |
| 19 | “Subtract line 16 from line 15.” “Then, go to Worksheet X” |
Line 16 is the cap the sheet produces. Worksheet X carries line 16 in as its line 6, and line 19 limits the repayment steps on X. Line 17 is the self-employed health insurance deduction when there is no APTC; with APTC it is not the final figure, because the publication then has you use one of its calculation methods: “The Simplified Calculation Method is shorter, but in some cases will not produce a result as favorable as the Iterative Calculation Method.”
The publication’s own example, Carla Birch
Computed from the printed example. Premium $13,000, APTC $4,200, net profit $30,000, self-employment tax $2,119 (Schedule 1 line 15), retirement plan $2,500 (line 16). Carla and her husband Jim have two dependent children, and Carla ran a sole proprietorship all year. The table repeats her printed worksheet, with each calculated line computed from the line before it.
| Line | Entry | Amount |
|---|---|---|
| 1 | Specified premiums | $13,000 |
| 2 | APTC from Form 1095-A, Part III, column C | $4,200 |
| 3 | Line 1 minus line 2 (computed) | $8,800 |
| 4 | Net profit from the business | $30,000 |
| 5 | Total of all net profits | $30,000 |
| 6 | Line 4 divided by line 5 (computed) | 1.0 |
| 7 | Schedule 1 line 15 times line 6 (computed) | $2,119 |
| 8 | Line 4 minus line 7 (computed) | $27,881 |
| 9 | Schedule 1 line 16 for the same business | $2,500 |
| 10 | Line 8 minus line 9 (computed) | $25,381 |
| 13 | Line 10 minus line 12 (line 12 is zero) (computed) | $25,381 |
| 15 | Line 13 minus line 14 (line 14 is blank) (computed) | $25,381 |
| 16 | Smaller of line 3 or line 15 (computed) | $8,800 |
| 17 | Lines 14 and 16 added (computed) | $8,800 |
| 19 | Line 15 minus line 16 (computed) | $16,581 |
Line 16 is $8,800 because line 3 ($8,800) is smaller than line 15 ($25,381). Line 19, computed as line 15 minus line 16, is $16,581. She carries it to Worksheet X.
Edition
This page reads Publication 974 (2025), Premium Tax Credit (PTC), the file irs.gov served on 2026-11-04 (sha256 in the kit data). Line numbers and letters belong to that edition, so check the label printed on the worksheet in your own copy before you follow a line reference.
Common mistakes
- Entering the full premium on line 1 for months you were not self-employed. Only the months of self-employment count, and a part month counts as a whole month.
- Forgetting the line 5 rule for losses. Net losses on the schedules are left out of the line 5 total.
- Treating line 17 as the final deduction when APTC was paid. The publication then points you to the calculation methods after Worksheet X.
- Using one Worksheet W for two businesses. Lines 4 to 13 are repeated for each business and only lines 14 to 17 are done once.
Related: Publication 974, Schedule 1 line 17, and Form 1095-A column C.
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Answer againSources
- Publication 974 (2025), Premium Tax Credit (PTC): https://www.irs.gov/pub/irs-pdf/p974.pdf
- Instructions for Form 8962 (2025), Premium Tax Credit (PTC): https://www.irs.gov/pub/irs-pdf/i8962.pdf
Read from the IRS documents linked above on November 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.