Good afternoon,
The token number is 1216333. I am running the desktop Windows 10 version of TT Home and Business with the latest update as of today (3/23/24). Here is a summary of the problem (which did not exist in TT 2022):
I am self-employed by an S-Corp. The total health insurance payments for the year were $12,346. Enrollment premiums reported on Form 1095-A were $12,203. The difference of $143 was entered on page 4 of the K-1 S Additional Information, under Outside Expenses, Self-Employed Health Insurance for more-than-2% S corporation shareholders, Line 1: Health insurance premiums paid or reimbursed by the S corporation that were not reported on Form 1095-A. This $143 was correctly carried over into (the new for 2023) Form 7206 by TT and the amount on Line 14 of Form 7206 is correct. A PTC of $6,105 is calculated on Form 8962, leaving a Self-Employed Health Insurance deduction on Line 17 of Schedule 1 of $6,242.
The problem is found on the MAGI worksheet for Form 8582, the Adjustment on the Self-employed health insurance line should be $6,242, which is the deduction shown on Line 17 of Schedule 1. Instead, it shows $6,099 (which is $143 less than it should be). When I right-click on the $6,099 and request "Data Source" a box pops-up stating "Schedule 1 SE Health $6,242"!! It seems pretty clear that TT is erroneously subtracting out the $143 from Form 7206. This incorrect MAGI is then used on Line 6 of Form 8582 and results in a reduction of the Passive Loss I am allowed to take.
Furthermore, the instructions published by the IRS for line 6 of Form 8582 make no mention of adding back any type of Self-employed health insurance deduction into the MAGI calculation.
I look forward to your reply and hope that this problem is resolved by TT soon.
Best regards,
Rick
