TurboTax software is deducting the premium subsidy I received between Jan-April because the system is taking into account my annual AGI which is $100K+. However, THAT income was earned May-December when I was NOT on the program. At the time my dependent was on the Program, I earned no income. How do I fix this?
There is nothing to fix. The Premium Tax Credit is based on your total annual income, not just your income in the months that you had the insurance. On Form 8962, line 2a should be your total income for the year. TurboTax is doing it correctly.
Thank you. I guess I don’t understand why I’ll be penalized for income I didn’t have during the program Which could never have been forecasted.and the income I eventually did receive Was unrelated as I was no longer receiving the benefits of the program when I eventually earned income. Completely two separate events but apparently the fact I eventually got a job is now a penalty for a tax credit I received for medical insurance after the fact