This bug has been present since Obamacare (ACA) started and STILL hasn't been fixed. WHY?
The self-employed (SE) can deduct 100% of health insurance (HI) premiums above the line, thereby reducing the AGI. If HI is obtained via ACA and advance premium tax credits (APTC) were received based on estimated SE income, the amount you should have received gets reconciled (8962) and any APTC underpaid or overpaid is resolved. For SE individuals, any excess APTC that has to be repaid then becomes part of the total HI premium cost and is deductible in calculating the AGI (Schedule 1, line 17 and 1040, line 29). Note that this has been confirmed by the IRS over and over. HOWEVER, TT Tax places the APTC repayment AS A TAX CREDIT on Schedule2, line 3 (and 1040, line 17). THIS IS A CRITICAL ERROR BECAUSE IT INCREASES the MAGI/AGI and results in an artificially low APTC credit or artificially high APTC repayment. This is a pathetic cop-out by TT because the IRS acknowledges the potential for a circular argument here. Well, TT, THAT IS WHAT WE are PAYING YOU TO calculate. FOR THE LOVE OF GOD, WHEN WILL YOU FIX THIS?
