IRS rejected amended 2020 1040-X due to SE health insurance deduction error

[Anonymous]

I e-filed my 1040 in Feb BEFORE the UCE was approved in Mar, so I fall into the small group of taxpayers required to amend my 2020 return, because I'm newly eligible for the Saver's Credit. I e-filed my 1040-X on 4/9/21 using TurboTax, with all updates applied as they've been released. However, IRS has now twice rejected my 1040-X amended 2020 return with the message:

• Schedule1_Self-Employed_Health_Insurance_Hold_Rule - Your federal return was rejected due to an issue with Self-Employed Health Insurance Deduction on Schedule 1: Additional Income and Adjustments to Income

The problem is that while my taxable income was reduced by the UCE, and the Saver's Credit was correctly calculated, and the waived repayment of excess premium tax credit was removed from Schedule 2, line 2, on the accompanying Form 1040, the SE Health Insurance Deduction on Schedule 1, line 16 was NOT, but should be reduced by the waived repayment of excess PTC.

I attempted using a workaround suggested last Wed by @DawnC, but it did not produce the correct value on Schedule 1, line 16, which continues to be overstated by the repayment of excess PTC, which was waived.

Please advise when TurboTax Mac software will be additionally updated to fix this error so I may resubmit my 1040-X e-file as soon as possible.

Thank you.

[DawnC · Accepted solution]

Did you try the work-around described here -  Correct Line 16 for SEHI and adjust Schedule A.      Further down that post, I added a few more details regarding the linked 1095-A.    Try unlinking the 1095-A from your Schedule C.   This will create a credit on Schedule A that you can remove.   Then enter the SEHI deduction in the business expense section - enter the amount you actually paid and that amount will show up on Line 16 (see images below to see where to enter).   Hope this helps!   

[Anonymous]

@DawnC thank you, yes, the "few additional details" regarding the linking of the 1095-A helped me over the hurdle. I just re-filed my amended 2020 1040-X, and hope it will be accepted by the IRS.