Schedule 3 line 15 not calculating correctly

[Sunny_22]

Changing the earnings on the 1040 is not changing the calculation on schedule 3 line 15.  The refundable credits should change depending on the earnings.

[AliciaP1]

The only refundable credits that would change based on earnings are the Earned Income Credit and the American Opportunity Credit.  The American Opportunity Credit only changes if your  Modified Adjusted Gross Income goes above the limits,  See Who is eligible to take the American Opportunity Tax Credit? for more information.

The Child Tax Credit and the Recovery Rebate Credit are generally flat amounts.

[Sunny_22]

Sorry, I was referring to schedule 3  line 9  net premium tax credit.  I entered my 1095-A and it is giving me a refund because my income is below what I estimated, but if I try to increase my income to say 250,000 the amount does not change.  My thoughts is the credit would go away and I would owe money back since my income is higher then I estimated when I signed up for the ACA.

[FangxiaL]

The Affordable Care Act (Form 1095-A) under Your tax breaks shows the amount you got in 2021. It will not change based on the income information you entered.

But click on Continue on the screen that says Here's what we have for your 1095-As, the amount of how much you qualify for, and how much you have to pay back will change based on the income you entered in TurboTax, which in turn will affect the refund or balance due amount.

@Sunny_22

[AmeliesUncle]

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@Sunny_22 wrote:

Sorry, I was referring to schedule 3  line 9  net premium tax credit.  I entered my 1095-A and it is giving me a refund because my income is below what I estimated, but if I try to increase my income to say 250,000 the amount does not change.  My thoughts is the credit would go away and I would owe money back since my income is higher then I estimated when I signed up for the ACA.

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Did you collect Unemployment Compensation in 2021?

[Sunny_22]

Yes I was collecting unemployment in 2021.  But If I increase my income to 250K the premium tax credit does not change.  It should show that I have to pay the amount back since my income is so high.  It should show up on line 2 of  schedule 2 1040 premium tax credit repayment.

[RobertB4444]

@Sunny_22 Please clarify, have you finished entering your 1095-A into the system?  

[Sunny_22]

Yes I did no change.

[AmeliesUncle]

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@Sunny_22 wrote:

Yes I was collecting unemployment in 2021. 

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A special rule only for 2021 says that if you collected Unemployment in 2021, then the Premium Tax Credit is calculated as if your income was at 133% of the Federal Poverty Level, regardless of your actual income.  That is why your credit this year is large, and why adding more income does not change anything.

[Sunny_22]

Ok thanks is there an IRS publication on that.  I would like to see it Affordable Care Act is dependent on a persons income. If you make more money then you estimated when you applied for health care your are supposed to pay it back on the end of the year.  If you make less money you get more of tax credit so I thought your calculator was not working correctly.

[AmeliesUncle]

Look at the "What's New" section for the Instructions for Form 8962.

https://www.irs.gov/pub/irs-pdf/i8962.pdf