TT 2021 Form 8962 - Error calculating repayment limitation?

Forum|Forum|4 years ago
January 20, 2022
29 replies
7 views

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.

Show previous replies

lquade80

Level 2

It's now Feb 4th when will this issue be corrected? Are we able to get a refund and refile somewhere else??

bktjj5

Level 2

Hi, I was able to file late on Feb 2, 2022 with the correct repayment of APTC. I was not notified of a fix from TT but when I logged in to TT I noticed the expected amount of tax owed and then I verified it looking at the associated tax forms did not put the $2700 limitation on repayment since I was over 400% FPL and needed to repay all the excess APTC I received throughout the year.

lquade80

Level 2

911093

mpatarroyo

Level 2

I need know if 2021 repayment of excess advance payment of the premium tax credit

Pattitann44

Level 2

When I used turbo tax it came up with me owing 550. But when I pulled the IRS forms and did the calculations myself for the 8962, the IRS owes me 515. So I filed a paper return. There is definitely an error in the software. File a paper return. A whole lot of people are going to pay in when they should have gotten a refund!

dk82

Level 3

To anyone who's SELF-EMPLOYED who encountered this issue (FPL >400% w/ erroneous $1350/$2700 repayment limitation), please note that this error also impacts the self-employed health insurance deduction. While my repayment obligation (1040 Schedule 2 Line 2) is now correctly listed as my full premium tax credit ($4972), the self-employed health insurance deduction (1040 Schedule 1 Line 17) is still using the incorrect $1350.

maestrowork

Level 4

Folks, this may not be an issue at all. (sorry if this has already been mentioned since I didn't read the entire thread).

For 2021, if you and/or your spouse had unemployment benefits and you are MFJ then your over FPL will not exceed 133%.

Otherwise, for 2021 AND 2022 even if your level is over 400% FPL, you don't have to pay back the credit because of the new law. However, this only applies to 2021 and 2022. For any other year (meaning 2023 onward) the 400% rule would apply so plan accordingly. If you will be making more than 400% FPL, then don't claim any PTC or else you will have to pay it all back when you file your 2023 tax returns.

jimkodet

Level 2

The IRS detected this error on my return and sent me an updated payment coupon. I was also at 401% and the IRS sent me the corrected amount to pay. Wow - pretty obvious error for TurboTax to miss.

wonbyjc

Level 2

I filed my taxes Jan 13 when your system said it was good to go. IRS accepted Jan 20. Due to the error with this form...I have been waiting for my taxes over 2 months now. I have used Turbo Tax for years but I wont ever again. It could be several months more that I wait. I have filed an ammended to correct this error but still its very unprofessional to say the least

noname87

Level 4

TT is still not correct. In my case, TT is limiting my self-employed deduction, TT does not appear to understand that once you are above 400% FPL that there in no limit to the deduction if your associate business income is greater that the deduction. I did not have unemployment income so no idea if that is a issue.

Basically sadly you cannot relay on TT in this case. who knows if tey will fix it by April 15.

Kdrevis62

Level 2

I need to talk to a person about this.