Filing a joint return. Under 400% of the 2017 poverty level. We should qualify for the PTC. Why is TurboTax stating we have to pay back the credit we got during the year.

[joseph-tuccillo]

I itemized  my deductions does this have any effect on the PTC?

[TaxGuyBill]

Look at Form 8962.
What is on Lines 1, 3 and 5?
What is on Lines 24-29?

[joseph-tuccillo]

1 =2, 2=75459 and 3=401%. Line 24= 0, 26= 4615, 26= 0, 27= 4615, 28=0, 29= 4615. The software is excluding about 20,000 of my social security that take my AGI Line 37 down to 55,459. Do I have to report the full social security amount to determine my PTC or can I use the amount on my 1040 line 37? My AGI on the 1040 form?

[joseph-tuccillo]

See the above text

[TaxGuyBill]

As Colleen pointed out below, your income is over 400% of the Poverty Level because you need to include ALL of your Social Security.

In SOME cases it can lower your overall repayment if you file as Married Filing Separately, so you may want to try that (if both of you are on the 1095-A, you "allocate" 50% to each of you).  You may want to try that out to see the results.

Do you have any "earned income" (from a W-2 or self employment)?  If so, if the income (including all of your Social Security) on your separate returns is slightly above the 300% mark or the 200% mark, contributing to a Traditional IRA to lower under the 300% or 200% mark will lower the repayment on that tax return.

[Coleen3 · Accepted solution]

What is household income?

For purposes of the premium tax credit, your household income is your modified adjusted gross income plus that of every other member of your family (see question 6) who is required to file a federal income tax return. Modified adjusted gross income is the adjusted gross income on your federal income tax return plus any excluded foreign income, nontaxable Social Security benefits (including tier 1 railroad retirement benefits), and tax-exempt interest received or accrued during the taxable year. It does not include Supplemental Security Income (SSI)

From <https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premiu...>