When I give my 2021 tax software a spin, it looks like it deducts the ACA premiums you paid during the year, (if you're going to itemize). The tax software calculates that for you. It also calculates the Excess Advance Premium tax credit repayment (Schedule 2 line 2). This is what you have to pay back if you make more than anticipated and have to return some or all of the ACA subsidy. This is fine. But it does not also add this calculated amount to your medical expense deductions. This is really just ACA premiums but paid late by you. Technically it was paid during the year for you and so are now paying the government back for doing so - much like you are paying a credit card. The software should throw the amount into your medical deductions. Why doesn't it? The instructions for TurboTax 2021 are pretty clear. Don't include premiums for an ACA plan. Clearly the tax software would double that as it figures that out for you from your 1095A. It also figures out that Excess Credit amount. Shouldn't the software throw that into the deductions? My reputable tax advisor says I need to include it.
