@dmertz As shown in my example in my original post, if the APTC repayment limitation isn't taken into account in calculating SEHID, then you can have a situation where I've paid a total of say $2575 for health insurance (premiums paid + limited APTC repayment), yet get to deduct $5000 in SEHID. This seems wrong to me. But it's pretty important for me to understand if it actually is wrong or not.
Obviously, it would be great for me if it's not wrong and I get to both limit my APTC repayment by thousands of dollars and at the very same time take a deduction on those same thousands of dollars I didn't have to actually pay. If that's the case, I need to know so I don't fail to take advantage of it. But if it's not the case, I need to know that so I don't take a SEHID on thousands of dollars I didn't actually pay due to the repayment limitation and get on the bad side of the IRS. The stakes are high on both sides. On one hand, thousands of dollars of additional deductions and on the other hand not filing a significantly incorrect return.
I really wish someone could tell me definitively what the fact is here. Can the SEHID actually include the full APTC repayment amount before limitation even though your actual repayment is limited? Or can the SEHID never be more than the total amount you actually end up paying in premiums + APTC repayment factoring in any limitation?
Whatever the answer is there's a problem with TurboTax though because it's not consistent. At one MAGI it will factor in the repayment limitation when calculating SEHID and at another, sometimes not very far apart, it won't factor in the limitation, even though in both cases the limitation is qualified for.
