Having gotten to filing today, I feel completely silly now about this entire question!
After selecting option 2) and confirming exempt, I forgot that TurboTax has you review everything once you're done with a section! So I filled out 1) for 0% subsidies, too.
Anyway, I'm still glad I asked here. This is a greatly helpful and responsive community, and I learned a few things to consider.
Thank you again!
