I am a sole proprietor who purchased health insurance through the ACA. I received tax credits, so needed to complete Form 8962. I also completed Form 7206 to determine how much of the premiums I paid could be deducted. It appears Turbo Tax adds both the amount from Form 7206, Line 14 (allowed deduction) AND what I think is the iterative calculated amount from Form 8962 together on Schedule 1, Line 17.
So, I paid $10,760 in premiums in 2024. If I only complete form 8962, TT appears to perform the iterative calculations and results in $9,408 automatically input into Schedule 1, Line 17. However, if I then complete Form 7206, TT then adds the amount from Line 14 (allowed deduction), resulting in $21,513 automatically input in Schedule 1, Line 17.
Why is this happening and what should I do to correct this issue?
Hope this makes sense!
