First of, thank you for your input. I am relieved that what I'm seeing happen in the TurboTax Deluxe software, isn't what should be happening by your interpretation of IRS rules.
I have enter the information in the format offered by TurboTax, so I don't see the 1040 line identification information you refer to. I've entered the Wages and income section, which includes retirement. In this section I entered the 1099R information for the converted Roth amount. I answered the questions about rollover, no cash, etc. The calculated tax owed at this point is what I expect it to be. Then I go to the deductions and credit section and enter the 1095-A information in the appropriate section. After I enter this information, the federal tax owed calculated is nearly 4 times the amount it was before entering the Health Care Tax Credit amount. The software calculations seem to be treating the Roth conversion as income because HCTC tax benefit goes away.
