TT 2021 Form 8962 - Error calculating repayment limitation?

Forum|Forum|4 years ago
January 20, 2022
29 replies
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Form 8962 was released today and there appears to be a glitch with how TurboTax is calculating the premium tax credit repayment. My household income as a percentage of the federal poverty line was greater than 400% (line 5). However, line 28 stills shows the repayment limit set as $2,700. It is my understanding that limit does not apply when MAGI % FPL is over 400. According to the IRS instructions line 28 should be left blank and you should be required to repay the full amount shown on line 27. Is anyone else experiencing this problem? I'm hoping someone will tell me that I misread the instructions and that I only owe $2,700! 😀

TurboTax Premier Online

Best answer by BillM223

Forgot to mention, I'm using Turbo Tax Deluxe. So appears this flaw spans multiple products which one would expect for consistency. 🙂

Thank you (all) for reporting this issue; we will be investigating it.

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Ldjmtv122

Level 2

I was just informed that it is an error on TT. They say it will be corrected by 2/3 and then you can go in and refile

pigpen

Level 2

so is it showing the correct amount for the refund if your getting rejected for this error or is it the wrong amount?

chasratian

Level 2

I am having the same issue with my return. Submitted my return yesterday received message it was rejected due to line 5 not being equal to line 3 household income. Is turbo tax going to correct this issue or due I need to ask for refund on turbo tax deluxe tax programI just purchased?

Kayjul37

Level 2

Mine also rejected and it has this information attached

“This return cannot be electronically filed at this time due to a processing error that will be corrected on February 3, 2022. On or after February 3, 2022 open the rejected return, review it for errors, and resubmit the return for electronic filing.”

Mitchellskowron

Level 2

I am were you able to get this resolved?

ecgj8080

Level 2

Token # 905668

Fancy 12

Level 2

Have you heard anything about an update yet? I’m having the same issue

murphyc78

Level 2

02/01/22: This issue is not resolved:

Description of error:

If Form 8962, Line 1 'TotalExemptionsCnt' has a non-zero value, then Line 5 'FederalPovertyLevelPct' must be equal to Line 3 'HouseholdIncomeAmt' divided by Line 4 'PovertyLevelAmt'.

What needs to be done:

This return cannot be electronically filed at this time due to a processing error that will be corrected on February 3, 2022. On or after February 3, 2022, open the rejected return, review it for errors, and resubmit the return for electronic filing.

Robinson2703

Level 2

I tried refiling my return earlier today, just before you submit, click "view documents" and check to see if the form that you had issues with was corrected.

My form 8962, line #5 was corrected so I resubmitted the return. 1 hour later the federal was accepted.

AMC32

Level 2

Where is view documents tab that you are referring to?

JPeterO

Level 2

With the update posted today (2/3), it appears the repayment limitation problem is solved. My 8962 no longer has a limit applied on line 28.

bktjj5

Level 2

I had the same issue using TT 2021 online version. It was incorrectly putting in a repayment limitation of $2700 even though my income was over the 400% poverty level. As of eve of 2/2/21 it seems to have been corrected and it showed the full amount of repayment of APTC on my form. I was able to submit the tax return and it was accepted by the IRS a few minutes later.

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