jawykes
Returning Member

HCTC Reporting - Federal Return Rejected

Federal return continues to be rejected even after the recent TurboTax software update with the following message, "IND-302 - If Form 8885 is present in the return, then 'OtherTaxAmtCd' in 'OtherTaxAmtGrp' in the return must have the value "HCTC" or Schedule 3 (Form 1040), 'HealthCoverageTaxCreditAmt' must have a non-zero value".  All eligible HCTC amounts were fully reimbursed in 2020 and the payments are accurately reflected in the 1099-H that was received.  Therefore, the Health Coverage Tax Credit correctly has a zero value on line 5 of Form 8885, which may be causing the problem.  Even though the HCTC credit is zero, it doesn't appear that TurboTax generated a Schedule 3, which could also be the problem.  Any help to resolve this problem would be appreciated.