Regarding paying back the PTC that is exactly the issue.
If we pay all of the PTC back then our AGI is below 400% FPL so we'd become eligible to keep the PTC we had received throughout the year. If we get to keep the $8000 in PTC our AGI is too high to be eligible for the PTC. According to publication 974 TT is supposed to do an iterative calculation to figure out what our AGI is and how much PTC we can keep. I don't think it makes that calculation and instead just jumps straight ahead and assumes we have to pay back all $8000 and adds them to the $10400 we paid in insurance premiums and says we can claim $19000 in expenses against the self employment income. But then later when it comes to ACA stuff it then determines that we get to keep the $8000 in PTC. So TT gets confused by this circular relationship between AGI and PTC and doesn't seem to follow the process of calculation outlined in publication 974. Which btw is not yet available for 2020 so maybe that's why TT doesn't do those iterative calculations since the 2020 version of that publication is not available.
