Federal return rejected due to issue with Self-Employed Health Insurance Deduction

[zacknauth]

Filed on Friday, notified about this rejected return today. States that "Your federal return was rejected due to an issue with Self-Employed Health Insurance Deduction on Schedule 1." This looks like a software error; has anyone else got this?

[krave13]

Same boat. Seems like we have to wait until the 30th for an update to fix it??

[zacknauth]

Yes, seems like it! Was your amount wrong, or did you notice anything else you think is wrong? Did you have a marketplace plan?

[krave13]

The amount on mine does appear to be wrong, by about $500. I did have a marketplace plan so I think for some reason it's not transferring the 1095-A info into the other area correctly. But, like others, I wasn't able to find the origin to try and delete the figure or adjust it manually. The only places I can find the figure aren't editable on the forms. I don't think I even found it on a worksheet because it's sort of a backend adjustment. It's quite infuriating as it seems like a glitch that's specific to only a small percentage of us that have marketplace plans and are self-employed. Yay...

[zacknauth]

Thank you for those helpful details! Yes, I paid about $6000 in MP premiums, and my form showed a self employed health insurance deduction of over $8000, so I think that is wrong. At least my advance premium tax credit that I had previously owed was zeroed out due to the Biden bill.

[lmus1]

Same thing happened to me! I found the amount on the bottom of the "Health LTC" worksheet (under Schedule C), but even after I overrode the amount there, it didn't update Schedule 1 which you can't override. Have you been able to make any progress?

[zacknauth]

No, nothing new. Today's softwarwe update to the download version of Home and Business did not fix the problem.

[zacknauth]

There is still a problem with a rejected return due to incorrect SE Health Insurance deduction, which is tied to an incorrect Form 8962

Although I am not being dunned the PTC repayment amount on the 1040 Schedule 2, it is still not correct on Form 8962, which shows an excess PTC amount showing. The Schedule 1 also shows a larger SE health insurance deduction than I paid in premiums. So I will check back tomorrow.

I finally figured out how TT is incorrectly calculating the SE health insurance deduction on Line 16 of Schedule 1 (1040). To the correct amount of actual premiums I paid, it is adding from Form 8962 the incorrect amount on Line 29 titled "Excess Advance Premium Tax Credit Repayment" (in my case, about $2000). TT should show this as a zero under the AR Plan, which would reduce my SE health insurance deduction amount by $2000.

[anika2]

Have you seen any software patches issued?  Is there any way to contact customer support?  I'm having a similar problem.  I'm self-employed and have a Marketplace Insurance Plan.  TurboTax is entering a persistent error on Line 16 Form 1040.  The only data field I can access manually in that part of the form is in the box between Line 15 and Line 16.  Entry B in that box ("Re-enter amount from box A here to reduce self-employed health insurance deduction by the amount of your premium tax credit") can be altered.  But I have to assume it's essentially "cheating" to change it.  And it's all due to a TurboTax software glitch anyway.  So frustrating.

Anyone else seen any actual help on this matter?  I'm ready to file an extension, print the whole return, and bring it to a friend's tax accountant to review and adjust by hand.  I hope I get my money back from TurboTax.

[krave13]

Just resubmit it as-is. From what I understand, the IRS guidance basically made it a non-issue since they’re forgiving the overages. If you resubmit, it will go through this time. Mine worked and I know several others from these message boards who were in our boat that were also able to submit again with no changes and have it accepted. It’s super annoying (not to mention terrible customer service) that you have to dig around to find that out as it should have been publicized by TT. So many of us were just waiting around for a stupid fix that didn’t come and now we’re having to help each other out because they just disappeared on the whole issue!

[anika2]

Oh my gosh, thanks for this reply!  The first true human with experience with the issue... I really appreciate it. 

Yes, the TurboTax approach to "support" is maddening.  It's like if you went to Target to tell them a product you bought was flawed and then, instead of getting the problem fixed, you got sent to a room full of focus group tables where everyone is encouraged discuss their frustration with products that have manufacturer defects.  Oh, and if you really want a new product that works?  Just click here to pay an extra $80 to talk to a human.  Tacky!

I'm going to cough up a few hundred dollars next year and just hire my friend's tax accountant.  My sanity has no price tag. 

Thanks again for chiming in!  I'll give it a try.