 So we're on page two here. So I'm going to jump on over and we'll say we paid the health insurance and I'm just going to say boom employer identification number. So I'm just going to say 10,000 here for the health insurance and then these things are going to be populated or added up. So if I was able to deduct that that would be added up down here, line 26, 35, 652, pulling over to page one and that is being pulled into this 35, 652. That gets us to our adjusted gross income and then we also and then we got the standard deduction and then we've got this qualified business income deduction which is a whole another kind of issue with regards to the Schedule C and so I won't dive into it in detail now and that gets us to the taxable income of the 41, 118. So we just want to show how all those kind of things are kind of connected and the bottom line is that if you're dealing with a Schedule C business then there's some of those things that you're going to have to do which will be possibly bookkeeping related, possibly data input kind of related, multiple items on the tax return and possibly some planning related items with regards to being able to maximize the benefits for tax benefits as well as social security tax versus the income tax and health care and whatnot and with regards to the health care then if you have the capacity to get health care elsewhere like through the employment then that could you know limit your capacity to get to your choices on health care because I think this is a this is something that the IRS kind of grudgingly does they kind of like would like the health care in essence to go through like an employer type of situation so if you have capacity to get health care from the employer or even from a spouse's health care system then you then you basically have the ability to do that and that could limit your ability to take the health care here if you have self-employment income that's going to be this item that's when you're kind of thinking that the government is treating you as if you're an employee of your own business because you could see what's happening here on the schedule C you've got the net income and now we're calculating not only the federal income tax but the social security and Medicare taxes for the basically the employer and employee portion so they're treating you like your own employee and employer in essence for the payroll taxes which is the equivalent here of the social security taxes and and that's what leads into sometimes these these other complications with some of these other benefits that are on the adjustment adjustments like the health insurance and the half of the self-employment tax so the bottom line is if you're subject to the self-employment tax then you might you might be able to then get access to something like the health insurance deduction so in other words a schedule C clearly if you have income you'll have the self-employment tax then you got to think about if you have other access to the health insurance with a partnership it's a flow through entity an LLC is a flow through entity where usually the money flows through from an LLC from the LLC tax return or partnership tax return and then but you still end up calculating the self-employment tax on over here so you're paying your self-employment tax through on the flow through entity the S corporation is where it gets a little bit messy because with an S corporation the flow through from the S corporation into into your tax return may not be subject to self-employment tax at that point because what the government tries to do is force you to pay yourself even if you set up a S corporation with just you they force you to pay yourself W2 wages so that and so now you've got a situation where you're like an employee of your own business under the corporation of an S corporation and then the health care kind of follows along you got to think about how the health care deduction will follow along with that scenario which is a little bit different than a scenario like a schedule C where you calculate the self-employment or even a flow through entity like an LLC or a partnership which is a little different than the flow through entity of an S corporation and notice if you have a loss too then if you're going to be limited most to the health insurance so for example if I said the schedule C let's say that let's say that we didn't even have a loss but we we were limited we only had 30,000 of income so that means or let's say we had 25 25 so we only had 5000 of net income on the schedule C so we we only have 5000 and then if I go on to the schedule one we have the 5000 pulling over page number two and now the self-employed health insurance has been limited here as you can see so you've got the 10,000 the earned income minus the deduction so on limits it here and if I say that there's a loss if I say that this is going to be let's say this was 10,000 and so now I have a loss on the schedule C a loss on the schedule C we know that the loss might be able to be pulled in to the 1040 but it's resulting in a in in something that's going below zero here so so we wouldn't have any taxes but we still could have other benefits possibly well if you have a any case if you had w2 income the loss could be beneficial there but notice over here on page two that we no longer have the calculations for the for the self-employed health insurance deduction because it's limited so that's maybe another reason kind of they put it here instead of on the schedule C because now it's going to be you can't take that it's not going to help you to get a further loss that you might be able to take against the income you're you're limited in that way as well