Major software glitch if you are self-employed and have Marketplace Health Ins. TurboTax enters a wrong # in Line 16, Schedule 1 (1040). How do we fix this?

[anika2]

This is a recurring issue for other users and no one has seen resolution yet as of 05.10.2021.  We need to file!!  When I go through "Error Check" at the last step in Turbo Tax, it catches this error and the software tells me to go to Line 16 on Schedule 1 (104) to correct the error.  

Sure enough there is an error.  Turbotax is persistently entering -5 in that field.  I try to correct it, to at least enter zero (though I admit I can't tell what figure should even be there). But I can't even correct this part of the form.  The data field is locked.  

Other users have indicated this is a software glitch, appearing to affect only people who are self-employed and have a Marketplace Health Insurance plan (the IRS has told them this is due to a "software glitch" upon rejecting their returns!)  But there still isn't a software patch issued by TurboTax?  What are we supposed to do?

[fanfare]

If you use Online, you can't override.

If you did not pay yet you can buy cd/download program.

you can pull the work you did already to your hard drive and open that in TurboTax program.

if you override, you can't e-File, but you can make corrections in the worksheets which is not considered an override.

[anika2]

Thanks for the thought, but I have the CD/download version of TurboTax.  That's what I'm working with, and even then, when i go into  "form view", this particular data field (Line 16, which has the error in it) is locked.  I click on it and it won't let me type in it to change the data.  That's one problem. The next issue is that, even if I could type in that field, I'm not sure what I should enter there.  I would need a tax accountant to evaluate that.  The whole point of Turbo Tax is that it makes it possible to DIY.  This error is making that impossible.

Other users are experiencing this too.  Some users who went ahead and filed their taxes despite the error have had their returns rejected with a notice from the IRS saying there appears to be a glitch in the software that produced their return (meaning a glitch in TurboTax).  This has been going on for over a month and TurboTax appears to be doing nothing.  And I can't find anywhere on this website to simply fill out a support ticket.  Maddening.

So much for saving money by doing my taxes on my own.  If I don't get an answer in the next 24 hours, I'm going to have to file an extension and have my partner's tax accountant review what I've got and fix the TT error. 

[KristinaK]

The first step I suggest you do is "unlink" your 1095-A from Schedule C, and then link it again. To do that, uncheck the box shown on the screenshot below. 

If that doesn't work, there is a workaround available for TurboTax Desktop version for this. Follow these steps:

1) Go to Forms Mode

2) Find 1040/1040SR Wks

3) Scroll down to the section with the negative number on line 16. 

4) Just above it you will see a box for Self-Employed Health Insurance Premiums Tax Credit Smart Worksheet. 

5) Remove amount from box B. 

For TurboTax Online, you have two options:

1) File an extension and wait for the fix. 

2) Do not claim the health insurance adjustment to income for self-employed. You can do that by unchecking the box for the question in the 1095-A interview about whether you were self-employed. See the screenshot. You can file an amendment after the fix comes through (TBD).

Here are instructions on how to amend your tax return.