I own an S Corp, which pays my health insurance premiums. That amount ($10,609) is on my W-2 as part of Wages. I fille out the appropriate section in Turbo Tax for this scenario. I got my health insurance through Covered CA, the state's health insurance exchange.
When I submitted my return, they were rejected because I didn't complete the information from form 1095A. (Which, BTW, TT didn't ask me to complete before I submitted the return.) Once I completed that info, I noticed that my Federal refund amount went from $970 to $1995. That didn't seem right. It took me quite a while to figure it out, but, for some reason, TT added an additional $8296 health insurance adjustment to Form 7206, the Self-Employed Health Insurance Deduction form.
On form 7206, the amount on Lines 1, 3 & 14 is $10,609, which is correct. But then there's a note at the bottom of the form that states, "A self-employed health insurance adjustment of $8296.00 from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets." On form 1095A, the amounts in Part III are: A = $10,646, B = $10,634, C = $2,065.
I can't figure out where TT got the $8269 figure. But more importantly, it's incorrect for TT to include that amount as an adjustment to my income. The amount of self-employed health insurance is $10,609, period. How do I get this corrected so I can resubmit my return??
