Why can't I remove the Premium Tax Credit from my return?

[xmasbaby0]

If your TurboTax fees are higher than expected, you can reduce them by removing add-ons:

• Remove Premium Services
• Remove MAX Defend & Restore
• Remove a state
• Remove PLUS Help & Support
• Remove Pay With Your Refund

[briandavidpowers]

That isn't what I'm talking about. TurboTax wouldn't let me file free since I had the Premium Tax Credit, so I removed form 1095-A, but then my return got rejected after I submitted my tax returns. I don't know why this happened. I really just want a TurboTax rep to help me because I don't know what to do. The 1095-A isn't supposed to be required to file, and if I include it, TurboTax forces me to upgrade to Deluxe.

[xmasbaby0]

Did you have marketplace health insurance in 2021?   If you did then you do have to include a 1095A and deal with the premium tax credit.

[briandavidpowers]

But if I include Form 1095-A then Turbotax FORCES me to upgrade to Deluxe if I want to file. The Premium Tax Credit is less than the $39 they charge for Deluxe, so I lose money doing this. I want to be able to file my 1095-A WITHOUT upgrading to Deluxe. I don't need the Premium Tax Credit; just let me remove that and still file the 1095-A.

[briandavidpowers]

How do I contact a TurboTax rep? This is ridiculous.

[xmasbaby0]

Oh....you want to use the Free Edition for something you cannot do using that version.   Sorry.

WHY DO I HAVE TO PAY?  I WANT THE FREE EDITION

The information that you can enter in Free Edition is pretty limited now.  Thanks to the new tax laws that began for 2018 returns, there are no more simple Form 1040EZ or 1040A's.  Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition.  Using the standard deduction instead of itemizing does NOT mean you will not need any of those schedules.https://ttlc.intuit.com/questions/4511011-what-happened-to-the-1040a-and-1040ez   If you started in the Free Edition and entered any data that required any of those three schedules, you have to upgrade to a paid version and if you are watching the screens carefully you are alerted to the upgrade.

When you chose to “start”  in the Free Edition —

Directly below the words “Free Edition” there is a blue link that says “For simple tax returns only”   If you click that link it brings up this information:

You can file with TurboTax Free Edition if you have a simple tax return.*

*A simple tax return is Form 1040 only.

Situations covered in TurboTax Free Edition include:

• W-2 income
• Limited interest and dividend income reported on a 1099-INT or 1099-DIV
• Claiming the standard deduction
• Earned Income Tax Credit (EIC)
• Child tax credits
• Student Loan Interest deduction

Situations not covered in TurboTax Free Edition include:

• Itemized deductions
• Unemployment income reported on a 1099-G
• Business or 1099-NEC income
• Stock sales
• Rental property income
• Credits, deductions and income reported on schedules 1-3

How does TurboTax make any money?

Customers with more complex tax situations will file with our paid TurboTax products that provide all the additional forms and guidance they need. We also offer additional benefits that go beyond filing your taxes, but they are optional and are not required to file simple taxes for free. We hope that, over time, as our customers with simple returns need more capabilities as their financial situations change (for example owning a home, having a child, managing investments), they have loved our products and services so much that they will choose our paid TurboTax offerings to prepare and file their returns.

Or—-Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site

https://apps.irs.gov/app/freeFile/

[briandavidpowers]

You are actually trolling at this point. How exactly does having health care make the tax return not simple? IT IS JUST HEALTH CARE! EVERYONE HAS HEALTH CARE, AND A TON OF PEOPLE GET IT THROUGH THE ACA. AND I DON'T WANT THE PREMIUM TAX CREDIT. It is extremely unfair and nonsensical that the exact way you got health care changes whether you qualify for the regular version of TurboTax.

Once again, GETTING HEALTH CARE IS NOT A COMPLEX TAX SITUATION. STOP TROLLING PEOPLE.

[xmasbaby0]

The premium tax credit must be reported on line 2 of  Schedule 2.   Using any of the schedules requires an upgrade.

https://www.irs.gov/pub/irs-pdf/f1040s2.pdf

[briandavidpowers]

"Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition.  "

That isn't true. TurboTax let me file with schedule 1 (but then my return got rejected by the IRS due to not having 1095-A, which I removed since I couldn't file under Free edition with it included). Clearly TurboTax is discriminating against people who got their health care through the ACA; it's literally just an extra PDF page. If they're willing to file schedule 1 for my student loans under the free edition, they should be able to file schedule 2 for health care. Imagine being that heartless.

I'm filing on my own then. Unless TurboTax wants to stop being an **bleep** and undo this disaster, I'll never use it again.

[sylviab24]

I am using the Premier CD version and after e-filing received an IRS rejection for not including form 8962.  I did not have ACA and have received only forms 1095-B / 1095-C.  Still I can't seem to "exclude" the requirement to provide form 8962.  Does anyone have any guidance on how to resolve this?  Even though I indicated I didn't have form 1095-A when being guided through my 1040 input, I can't seem to find anything that will get me past it.  Thanks in advance!

[sylviab24]

TT even states that "If you didn't have insurance under the Affordable Care Act, you can disregard this."

[TeresaM]

Please check in the interview section but also make sure there are not any partially completed forms hung in the return.

When our interview section Affordable Care Act (Form 1095-A) for the Marketplace insurance reaches the screen Did you receive Form 1095-A for your health insurance plan? it will default to "Yes".  If you select "No" and Continue, it will not generate any Form 8962 information into your return. If you come back, it will default to "Yes" again, but it remained the "No" you selected until the time you came back into the area. This is as it should be.

To be sure there is not a partially completed form in TurboTax, please check in Forms mode to delete the form from your return.  You will want to make sure there is not a Form 1095-A or a Form 8962.

1. Please go to the upper right-hand corner and click on Forms; it will show you a list of all the forms in the return along the left column.
2. If you see a Form 1095-A or a Form 8962, click on it and it will open in the pane on the right. You can click Delete Form, at the bottom.
3. Repeat until any Form 1095-A and Form 8962 are deleted
4. Go to the upper right-hand corner and click on Step-by-Step (or Easy Step) to switch back to Interview mode.

This should resolve the flag in Review.

[sylviab24]

Hello.  Thank you for the response. 

I had performed these tasks a few times using a "hint" from another user with the same issues I believe from last year.  I had confirmed that there were no such forms in that (Forms) view prior to resubmitting my return.  In any case, I am trying it again and hope it goes through this time.

FYI:  per another user's suggestion, I "created" the Forms 1095-A and 8962 by inputting dummy information insuring the forms were in existence, saving the return and then went to Forms and deleted them, saving my return again afterwards.  Unless there is some invisible flag or form, they're not appearing in the Forms view.

[sylviab24]

After removing and confirming Forms 1095-A / 8962 didn't exist, I resubmitted via e-File.  I've been once again rejected with the following

'The e-File database indicates that Form 8962 or a binary attachment with description containing "ACA Explanation must be present in the return".

This return rejected due to Form 8962 Premium Tax Credit missing from the return. In order to complete Form 8962, you should have received Form 1095-A Health Insurance Marketplace Statement with relevant information on the insurance that you purchased in the marketplace.

The ACA Marketplace providers have until 1/31/22 to provide......'

I don't know what else to do to resolve this...any other ideas?