Form 8962 and Schedule A Medical Expense Worksheet (Turbotax error?)

[Anonymous]

I'm thinking there is a mistake in TurboTax Deluxe regarding excess Advance Payment of Premium Tax Credit (APTC).  Form 8962 line 29 shows the amount of excess ACA premiums that were paid by the government and must now be repaid by the taxpayer.  This pending repayment amount should be added into line 2b on the Schedule A (Medical Expense Premiums) for the purposes of calculating whether to take the standard deduction or not.  Can you confirm?

[JohnW152]

You’re correct about the inclusion of the amount on your Schedule A.

According to Premium Tax Credit in the IRS’ Publication 502 (2021), Medical and Dental Expenses, “...[A]ny amount of advance payments of the premium tax credit that you did have to pay back can be included in medical expenses.”

This amount would be included on line 1 of Schedule A, though, as Medical and dental expenses.  

Line 2 of Schedule A refers to the Adjusted Gross Income amount from Form 1040.  There’s not a line 2b. 

[Anonymous]

Thank you, John, for the prompt reply and confirmation.  When I was referring to line 2b, I was referring to the worksheet for medical expenses for Schedule A, rather than Schedule A itself.  Line 2b on the worksheet says "Form(s) 1095-A - net of adjustments" which is copied by TT from form 1095-A.  Now that we know this excess APTC amount should ultimately wind up included on line 1 of Schedule A, I wonder if TT should  include this amount as part of line 2b?  Or if it should be handled in some other way?  Thank you.

[JohnB5677]

Please clarify the form you are looking at.  I'm in the CD Desktop version, and I can not find a Schedule A Worksheet. Also, I do not see a line 2b on the Schedule A.

[Anonymous]

Hi John,

The Schedule A Medical Expense Worksheet that I am talking about is part of my TT return.  If you have a test return in TT Deluxe, you can click on FORMs in the upper right corner of the screen and it will show you the forms that TT generates.  Under the Schedule A, there is "medical Wks" (See picture below).  The "Medical Wks" worksheet is used to total up all the medical expenses that should be totaled on Schedule A line 1.  My comment is that I believe line 2b on the worksheet should include the excess APTC. Am I correct?

[JohnB5677]

Thank you for the clarification.  

On the Medical Expenses Worksheet

• Line 1 will be for the Prescription Medication only
• Line 2b will have the 1095-A information
• That along with any other  Medical Expenses is totaled down to Line 14
• This is the number that carries over to Schedule A line 1

[Anonymous]

OK.  Now I think we are on the same page.  Here is my question. @JohnW152  confirmed that excess APTC (line 29 on form 8962) should be reported on the Schedule A Medical Expense Worksheet and therefore carried to  Schedule A line 1.  Where should this amount be show on Schedule A Medical Expense Worksheet?  Thank you again

[ThomasM125 · Accepted solution]

The excess advance premium tax credit repayment would show up on line 2(b) of the medial expenses worksheet in the year in which you pay it, which would be the year following the year you see it on form 8962.

[Edited 3/3/2022 at 1:54 PM PST]

@Anonymous

[Anonymous]

Thank you, @ThomasM125, for your reply.  We are now agreeing that excess APTC should be added into line 2b on the Schedule A Medical Expense Worksheet, however, I cannot change this field since it is automatically filled in by TT.  Is this a bug in TT 2021?

[ThomasM125 · Accepted solution]

It is deductible in the year you pay it, so you would not see it as a deduction in the same year you see it on form 8962.

@Anonymous

[Anonymous]

Hi @ThomasM125. Thank you for the clarification.