topic Form 8962 Tax Credit Calculation Error - TurboTax Desktop in Get your taxes done using TurboTax

Form 8962 Tax Credit Calculation Error - TurboTax Desktop

spaceoddity — Mon, 23 Feb 2026 10:53:12 GMT

UPDATE 1: Higher-level moderators have said that this issue is being worked on. However, the form is still marked as "Ready to File." I highly recommend waiting until this gets marked as "Not Ready," as a sign that they are indeed in progress of changing.

TurboTax Desktop (Home and Business) says that Form 8962 for calculating health care premium tax credits is complete and ready to file. However, it is NOT setup correctly, and will not calculate the proper subsidy amount for filers with incomes above 400% of the poverty level.

Here is a summary of known issues:

TurboTax Desktop incorrectly calculates that any income level over 400% of federal poverty level (FPL), do not get a tax subsidy. This is incorrect according to the IRS. The "cliff" for above 400% was removed for 2021 and 2022 filing.
The worksheet doesn't calculate the proper percentage of the poverty line above 400% at all. It just sets it at 401%, if it's over at all, and refuses to calculate the proper subsidy above 100% FPL.
Update 2: I was incorrect about the FPL. IRS uses the previous year FPL for these calculations. Apologies! The worksheet for Form 8962 appears to be using 2021 federal poverty level. For a family of 3, according to the IRS, the poverty level for 2022 is $23,030. TurboTax is using the 2021 number of $21,960 (for 48 states+DC). See here: https://www.healthcare.gov/glossary/federal-poverty-level-fpl/

So the current software version doesn't properly calculate the tax credits foy anyone above 400% FPL.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

Anonymous_ — Fri, 13 Jan 2023 20:33:54 GMT

This will be reported.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

spaceoddity — Fri, 13 Jan 2023 20:37:36 GMT

Excellent thank you!

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

Critter-3 — Fri, 13 Jan 2023 23:15:57 GMT

This was reported several days ago and it will simply take some time to update the program.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

jcpierson — Sat, 14 Jan 2023 19:29:22 GMT

Thank you, I could not figure out why TurboTax was not automatically creating and filling in FOrm 8962 after I entered my 1095A. I will wait for an update and hope/expect that will solve the problem.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

carpema — Sun, 15 Jan 2023 23:49:11 GMT

Thank you.

I have reported the same issue. Turbo Tax does not compete the 8962 and said that I have to pay the full premium tax credit back I ran the same information in Tax Slayer says I only need to pay a small part of it back.

How will we know when this is fixed since we no longer get updated on what has been fixed/added/changed?

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

Critter-3 — Mon, 16 Jan 2023 01:06:30 GMT

Simple ... when you log in the balance due or refund will be different. Then go look at the form itself.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

carpema — Mon, 16 Jan 2023 19:30:32 GMT

Turbo Tax shows 8962 line 29 as 3444 for amount of Premium Tax Credit to pay back, Tax Slayer shows 356.

In Turbo Tax, Using 1095-A I filled in all 12 months all the same and only Part II line 11f had a number in it. Tax Slayer filled ion all spaces on line 11, a-f

Someone has something wrong.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

pdxtony — Mon, 16 Jan 2023 20:03:20 GMT

There's a longer thread on this topic here: https://ttlc.intuit.com/community/taxes/discussion/re-turbotax-2022-form-8962-premium-tax-credit/01/2818286#M1022895

In short the problems is that form 8962 line 11 isn't transferring values from 1095a line 33 if your income is above that 400% of the poverty level. This results in subsequent calculations being wrong. And, you can't override and populate yourself.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

CASteve — Wed, 18 Jan 2023 18:33:43 GMT

Thanks for the update. I also reported this last week and they didn't seem to know what I was referring to. Seems they come up with the right contribution amount on line 8b according to the 8962 instructions for those over 400% but the table doesn't get populated by 8b and some of the data from 1095-A doesn't make it into the table.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

carpema — Wed, 18 Jan 2023 18:44:23 GMT

Here is info in PUB 17

ARP expanded the PTC by elimi-
nating the limitation that a taxpay-
er's household income may not ex-
ceed 400% of the federal poverty

line and generally increases the
credit amounts. In addition, in
2022, if you receive unemployment
compensation, you are generally
eligible to claim the PTC if you
meet the other requirements. For
more information, see Pub. 974
and Form 8962 and its instructions.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

Polkadot1 — Wed, 18 Jan 2023 19:57:08 GMT

@carpema It was also nice to see elimination of the 400% "cliff" mentioned in this month's AARP Bulletin, (Jan / Feb 2023 issue, page 6) further confirming that it is accepted gospel and TurboTax's 8962 form is inaccurately calculating the Premium Tax Credit for those of us at 401% Federal Poverty Level. How many more sources do we need to quote to please TT?

Making Health Care More Affordable

I'm not on Medicare yet. Is there anything in the law to help me afford ACA policies?

Yes. The new law extends until the end of 2025 the expanded Affordable Care Act (ACA) premium subsidies that were instituted under the American Rescue Plan Act of 2021. This means that more people will continue to be eligible for the ACA subsidy and no one will have to pay more than 8.5 percent of their annual income for an ACA health insurance plan premium.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

Critter-3 — Wed, 18 Jan 2023 20:02:45 GMT

If this is all about the line 11 not being used in the TT program on form 8962 that is because the program doesn't let you enter the annual column totals like a professional program does ... it requires you to enter every month separately ... but the program is completing the form correctly ... this is from my professional program (note a couple $$ difference due to the rounding) ... compare it to the 8962 in your return.

I should compute a partial credit but the rules do not say you don't have to pay back all of the advance credit you got ... just that the removed cliff allows you to have some of the credit ... that you don't need to pay it all back.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

Critter-3 — Wed, 18 Jan 2023 20:13:03 GMT

Even if I put no advance credit recieved I get the same credit allowed on line 24 using the same 401% income ...

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

Critter-3 — Wed, 18 Jan 2023 20:38:24 GMT

This is correct in my professional program ... can anyone look at the TT program to see if it is also working correct ... please post back which lines on the 8962 are not working correctly ...

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

CASteve — Wed, 18 Jan 2023 20:55:36 GMT

In your example, you show the amount from line 8b going into column C of the table. TT is not doing this. You also show amounts in column A and B. These are supposed to come from the 1095-A and I am not seeing them copied to form 8962. So in TT, the calculation on line 8b seems to be correct based on the 8962 instructions however the only column in the table that has values in it is column F. I think it would work if the values in all columns were present.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

Critter-3 — Wed, 18 Jan 2023 20:59:55 GMT

OK... so now we know what is not working in the TT system ... I will post to the moderator again.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

fordtimjohnpaul — Wed, 18 Jan 2023 21:07:18 GMT

What is the expected timeframe for getting a new update?

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

carpema — Wed, 18 Jan 2023 21:20:50 GMT

There is no issue with Part I, only Part II. Turbo Tax is only filling in line 11f and says it must all be paid back.

Re: Form 8962 Tax Credit Calculation Error - TurboTax Desktop

pdxtony — Wed, 18 Jan 2023 22:02:11 GMT

To be clear, as I've mentioned in the other thread on the 8962 form, if your income is over the 400% threshold the TT is not populating 8962 11a and 11b with the values entered on 1095a (33a and 33b respectfully). Because there are no values transferred subsequent calculations assume these values are zero - which is wrong.

I just picked up HR Block software and can confirm that they transfer values properly and the program doesn't have this issue