I have informed multiple employees and a CPA for TurboTax of the below issue: Mark, who was part of the initial team of "specialists" that answer questions about turbotax when you call in. Mark spoke with his supervisor and escalated me to Jory. Jory escalated me to a CPA, Sohaib, who was to determine if the issue actually existed, which he admitted I was correct, and then is supposed to be escalating this issue for internal review and hopefully it will be fixed.
In turbotax to get to this section you go under 'Deductions & Credits' 'Medical' 'Affordable Care Act'
The problem:
TurboTax populates line 11b-23b of form 8962 Premium Tax Credit solely based on what you enter for the 1095-A lines 21b-33b that was sent by the healthcare marketplace.
The issue is that in certain circumstances as explained under the Line 11, which directs you to Line 10 instructions for Form 8962 located below, the values are incorrect in the form 1095-A lines 21b-33b that you received from the marketplace.
https://www.irs.gov/instructions/i8962#en_US_2021_publink100036365
Here is what it says:
""
Missing or incorrect SLCSP premium on Form 1095-A.
Generally, there are two situations where your SLCSP premium may not be accurately reflected on your Form 1095-A. If either of these two situations applies to you, or if you have reason to believe the Marketplace reported the wrong applicable SLCSP premium, you must determine the correct applicable SLCSP premium for every month. If the correct applicable SLCSP premium is not the same for every month of 2021, check the “No” box and continue to lines 12 through 23. The two situations in which your SLCSP may not be accurately reflected on your Form 1095-A are the following.
No APTC was paid for your coverage. If no APTC was paid for your or your family member’s coverage, the SLCSP premium reported in Part III, column B, lines 21 through 32, of Form 1095-A may be wrong, left blank, or reported as -0-. To determine your applicable SLCSP premium for each month, see Pub. 974 or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/. If your correct applicable SLCSP premium is not the same for all 12 months, check the “No” box and continue to lines 12 through 23.
Change in circumstances affecting SLCSP. If you had a change in circumstances during 2021 that you did not report to the Marketplace, the SLCSP premium reported in Part III, column B, lines 21 through 32, of Form 1095-A may be wrong. Examples of changes in circumstances that may affect your applicable SLCSP premium include the following.
You enrolled an individual newly added to your tax family during 2021 (for example, a newborn).
An individual in your tax family was enrolled in your qualified health plan for some but not all of 2021.
An individual in your coverage family became eligible for or lost eligibility for employer coverage or other MEC during 2021.
You are including an individual in your tax family for the year of coverage, but you did not indicate to the Marketplace at enrollment that you would do so.
You indicated to the Marketplace at enrollment that you would include an individual in your tax family for the year of coverage, but you are not doing so.
An individual enrolled in the coverage died during 2021.
You moved during 2021.
If any of the above apply and you did not notify the Marketplace or if you have reason to believe the Marketplace reported the wrong applicable SLCSP premium, determine the correct applicable SLCSP premium for the months affected. See Pub. 974 for information on determining the correct applicable SLCSP premium or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/. If your correct applicable SLCSP premium is not the same for all 12 months, check the “No” box and continue to lines 12 through 23.
""
The issue is that TurboTax does not ask you if you fall in to the above circumstances.
In my case, the 1095-A was reporting a 0 in the B column (SLCSP).
Before figuring this out on my own by manually following the IRS website form which directed me to use the HealthCare.gov/Tax-Tool/ tax tool to calculate the correct SLCSP value, I was missing roughly $5,000 in Premium Tax Credit.
This is a huge mistake by turbotax to miss on the instructions for that form. The main issue is that people who don't know on their own that this value could be wrong or that they should be getting the tax credit don't know to use the tool to calculate the right number.
The issue for me at this point is that I technically have no where to enter this on the turbotax website. I can force it to calculate the right amount for the premium tax credit by changing the values of 21b-33b on the 1095-A that I am logging in to the turbotax website, but then that won't actually match whats on my 1095-A.
Forms for reference:
Form 8962 Instructions:
https://www.irs.gov/instructions/i8962#en_US_2021_publink100036365
Form 8962:
https://www.irs.gov/pub/irs-pdf/f8962.pdf
Premium Tax Credit Publication:
You'll need to sign in or create an account to connect with an expert.
@gregag825 wrote:I can force it to calculate the right amount for the premium tax credit by changing the values of 21b-33b on the 1095-A that I am logging in to the turbotax website, but then that won't actually match whats on my 1095-A.
That is what you do. The 1095-A in the program is only a worksheet, so there is no need for it to "match" your actual 1095-A. Just enter the correct amount for column B, so it will correctly populate the 8962.
I don't have the current year program, but when I'm looking at an older program, when you are entering your 1095-A, there is a blue link on the bottom that says "What if the SLCLP listed in 33B is zero?", then it gives you more information. So if that is in your current-year program, the program DOES tell you what to do and perhaps you just didn't see it (but again, I am not certain that is still in the current year program).
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
wallacelee32478
New Member
yaghoubi92
New Member
hansenjoa1
New Member
dtaylor5
Level 2
RobbieLeighB1956
New Member