It appears that the self-employed health insurance deduction is calculating incorrectly when you get near the 400% cutoff for the subsidy. The IRS allows an iterative or a simplified calculation, since the deduction impacts MAGI and MAGI impacts the percentage of FPL to use in the Premium Tax Credit formula, which then impacts the deduction. I have laid out my numbers in Excel with circular references enabled and got the numbers I expected - a percentage FPL of 399 and an excessive advance payment of $68. TurboTax is saying I am at 401% and owe the full subsidy back. I have looked at TurboTax numbers when at a lower percentage such as 396% and it worked fine. Can you tell me if you use one of the two approaches the IRS lays out in its forms or do your own iteractive calc? Can you check to see if you have a rounding error? I can supply test numbers if you need them. The IRS says that any method of calculating is fine as long as the deduction plus the PTC do not exceed the actual premium and my calcs meet that test. Is there a way to substitute in my numbers so I can still e-file? Is there a way for me to see the calculations made by TurboTax for generating the self-employed insurance deduction - I do not see a worksheet for that - just the "adjustment" result at the bottom of the worksheet for self-employment health insurance deduction? Thank you.
