I am using Turbo Tax Home and Business - Form 7206 Line 14 has a correct value for my self-employed health insurance costs. The line states that the value should be entered into Schedule 1 Line 17; however, that line does not have the correct value from Form 7206 Line 14.
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Thank you for providing your token number. After taking a closer look at your return, everything is correct even though it does not appear to be.
Take a look at your Form 7206 again. At the bottom of the page, there is a note that states the following:
A self-employed health insurance adjustment of $xxx.xx from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets.
The amount shown in the note is the difference between what you expected to see and the value actually reported on Schedule 1 line 17.
I have a very similar issue, but I do not see the disclaimer on the bottom of form 7206 that would explain the discrepancy. Any thoughts?
Token: 1192846
@MPT47 For me, the disclaimer only shows up if you look at the form within TurboTax (menu View > Forms). If I print the Form 7206 the disclaimer does not show up.
Thanks, unfortunately I don't see that menu anywhere. Perhaps it's only available after returns are filed? A bit of a catch-22 if I can only confirm it's correct after filing...
@MPT47 Sorry, I forgot to mention, I am using the desktop version. I don't know how to view forms if you are using the web version.
On the desktop version you can view the forms at any time using the View menu option and then Forms.
I agree, the disclaimer does not show up when you print the 7206 form. So how would the IRS know amount the disclaimer note? Or if I don't e-file how would they know?
I agree with another user, the form 7206 disclaimer does not show up when you print the 7206 form. So how would the IRS know there is a disclaimer note re self employed insurance expense on form 7206?
@AnnetteB6 would you be willing to have a look at this for me? I'm truly baffled by the discrepancy and I think it's due to an error in the software, in my case. I can't find any documentation from IRS or other sources that would explain this.
@MPT47 I don't know if Intuit has gotten back with you or not. But they may consider this problem as "closed". If you have not heard from them I would suggest making a brand new topic entry, and they will probably see it.
Good luck.
Thank you. I contacted customer support about this and I think I was able to convince them that it may be a bug (also possible that it is correct, but just not explained clearly on the tax return). I believe they are looking into it.
Thanks for the letting us know you contacted TurboTax. Please let us know if you hear back.
FYI I just contacted support too. The support person does agree it’s an issue (form 7206) and she said she will reach out to her colleagues.
With that said, I do believe TurboTax thinks the issue is resolved but it clearly is not.
This is becoming very frustrating.
I received an update from TurboTax that "Subject Matter Experts [are] saying that there is not an issue and that it is pulling across correctly as it shows on separate forms." A bit concerning because the heart of the issue seems to be that the number from form 7206, line 14 is NOT pulling across correctly to schedule 1 line 17. However, they also say an IT investigation is ongoing.
I have to hope that either IT confirms this is a bug, and fixes it, or we get a cogent explanation for the discrepancy that's based on IRS guidance (not just "it's fine") and we can go ahead confidently with filing.
Thanks for the update. I agree 100% that form 7206 line 14 is incorrect.
Also, if form 7206 is not needed, it still ends up in the forms e-filed with the IRS and there is no way to delete it.
Still no word from TurboTax on this. Very frustrating given this issue has been open for weeks now and they give a "100% calculation guarantee" and until proven otherwise, this is a calculation error.
I'm curious whether there is any recourse for customers who have an issue that just is never fixed? This issue alone has taken hours of time (setting aside the hours spent on initial tax prep), but I may need to find an alternative way to generate and file my taxes if this error is not fixed soon.
An update: I was able to find a workaround (on my own - no support was ever provided for this issue).
TT automatically populates Schedule 1, Line 17 with data from form 8962. This includes the premiums you pay in an insurance exchange (from form 1095-A). TT also adds any health insurance you claim as a business expense (calculated on form 7206). This can lead to double counting. How to reconcile this will probably depend on your specific situation and whether or not you claim the premium tax credit.
TT (online version) produces no warnings for this issue, no explanation is provided on the tax return, and messaging / explanation of where to claim these expenses is minimal. This ended up being a huge time sink and I suspect some filings will be inaccurate as a result. Shame.
I am having the same issue, what was the workaround? How did you resolve it?
With the caveat that I'm not a tax professional, it seems like the only solution is to remove one of the insurance expenses: either under your business expenses, or by deleting form 1095A. This would only apply to health insurance costs that appear on 1095A. If you are claiming the Premium Tax Credit or received APTC, you have to file form 8962 (meaning you have to report the information provided on form 1095A).
This response was just posted this morning by a "Employee Tax Expert" on another thread:
Take a look at the following TurboTax help article and click the link to register your email address for notifications as this situation is addressed: Why is TurboTax adding an incomplete Form 7206 when I'm not required to file it?
My license code is 1224354.
This is in relation to a file I just sent you showing that
the last line of Form 7206 is NOT the same as Schedule 1, line 17.
Bruce Hicks
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Ok, so I shouldn't worry about it, I guess.
However there are still two questions. Let's just say I am curious?
One, why does line 14 say it should be transferred to Schedule 1 if that is not true?
Two, how did they arrive at the figure in the note at the bottom. Is there another worksheet?
In my case, I was worried about it because the additional insurance expenses claimed came from form 1095-A and TurboTax was double counting insurance payments (with no explanation whatsoever of what was happening). This may not be what is happening for everyone who has a similar problem, though.