@dmertz Thank you so much for responding.
But how does the APTC repayment limitation factor in? Without the limitation, my PTC + SEHID may add up to the total cost of the insurance. However, what I'm experiencing is that in quite a few cases, even after my AGI is low enough that I do have an APTC repayment limitation, my PTC + SEHID still add up to the total cost of the insurance even though due to the repayment limitation, I'm not actually paying back a huge % of the original repayment.
Take the example in my original post:
"So imagine I paid $1000 in premiums out of pocket throughout the year. And imagine the APTC repayment amount without the limitation would be $4000. But the repayment is actually capped to $1575 since my AGI is below 400% FPL. TurboTax is calculating an SEHID of $5000 ($1000+$4000), when it seemingly should only be $2575 ($1000+$1575). That SEHID of $5000 seems much higher than it should be or I think it’s allowed to be. I don’t think the IRS allows an SEHID that’s more than the total premiums plus actual APTC repayment you pay out of pocket, do they?"
In a case like this, with the $5000 SEHID, that $5000 SEHID plus my PTC qualified for may add up to the total health insurance cost, seeming to pass the test you mentioned from the IRS (if I'm reading it correctly). But since I'm not actually paying back the full $4000 repayment and only paying back $1575, it seems like it can't be correct that I get a $5000 deduction.
Am I thinking about this correctly?
