IRS Publication 26 CFR 601.105 describes a situation with self-employed individuals who also are insured through the ACA marketplace, where there is circular logic in calculating AGI for determining subsidy qualification, and therefore net cost of health insurance. It is an issue that was identified back in 2014.
In a nutshell, the circular logic is: Health insurance premium subsidies are dependent on AGI, but a self-employed individual's AGI is dependent on health insurance premiums (which are net of subsidies). Oops!!!
26 CFR 601.105 goes on to describe two iterative methods of resolving this circular-logic issue. However, an article I read from late 2018 suggested that most tax software should have the calculations built in, making it an issue that should not be problematic.
Question: Is this something that TurboTax handles automatically? If so, where and how do we see this? And, what all versions of TT will provide this feature?
