This is my second year on an ACA policy, but the first year where I might be able to itemize my deductions. I'm able to reconcile everything that TT is doing (TT desktop on Windows) other than the Medical Expenses Worksheet. I'm reasonably sure that it's user error, but I just cannot find a way to make the numbers add up, so would be grateful for any assistance.
From my 2022 1095-A Annual Totals:
From my 2022 Form 8962 Annual Totals:
Medical Expenses Worksheet
Total annual premiums actually paid: $3,946
In my first pass at the questions, I included the $3,946, since I didn't know that TT was doing some behind-the-scenes calculations. That gave me a total health insurances premium number that was far too high. However, if I don't include it, it seems to me that the number that TT has calculated for Line 2b in the Medical Expenses Worksheet is too low.
I can't make sense of these numbers. Help, please? Thank you.
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I figured it out, although there is still a $1 discrepancy. I can live with that.
There were three issues, one an accounting error on my part, the second an extra credit card fee that the insurance company was charging me for paying my bill by credit card (a fee that I cannot include in my premium paid), and the third a premium tax credit.
I reported in my initial post that my total annual premium paid was $3,946. I made a mistake in one of the monthly premiums that I was tracking. My premium assistance was reduced in April, 2022, due to the updated AGI from my tax return. I had mistakenly moved that reduction to March, 2022, meaning that my figure for March was incorrect, over by $133. Adjusting that reduced my annual premium paid to $3,813.
The second issue was a monthly $2.92 credit fee, an annual total of $35.04. Removing that left me with an annual actual premium paid of $3,778.
Finally, when calculating the premium tax credit, the figure was $598.00, essentially a refund of premiums paid. I can't include that in my annual actual premium paid figure, so removing that leaves me with an annual actual premium paid of $3,180, rounded to the nearest dollar.
The figure that TT used in the Medical Expenses Worksheet was $3,179, a difference of $1. I don't know where that $1 came from, but I'm okay with not knowing that. I think (I hope) I finally understand how this works.
TurboTax will indeed include information from your Form 1095-A form into your Medical Deductions information. Do not enter your premiums again in the deduction section.
The total of your Premium Tax Credit will be subtracted out of the total cost of the policy. Your actual payments of $3,946 are credited with the additional Premium Tax Credit that is applied on your return, since your estimated Advanced Premium Tax Credit was low.
I figured it out, although there is still a $1 discrepancy. I can live with that.
There were three issues, one an accounting error on my part, the second an extra credit card fee that the insurance company was charging me for paying my bill by credit card (a fee that I cannot include in my premium paid), and the third a premium tax credit.
I reported in my initial post that my total annual premium paid was $3,946. I made a mistake in one of the monthly premiums that I was tracking. My premium assistance was reduced in April, 2022, due to the updated AGI from my tax return. I had mistakenly moved that reduction to March, 2022, meaning that my figure for March was incorrect, over by $133. Adjusting that reduced my annual premium paid to $3,813.
The second issue was a monthly $2.92 credit fee, an annual total of $35.04. Removing that left me with an annual actual premium paid of $3,778.
Finally, when calculating the premium tax credit, the figure was $598.00, essentially a refund of premiums paid. I can't include that in my annual actual premium paid figure, so removing that leaves me with an annual actual premium paid of $3,180, rounded to the nearest dollar.
The figure that TT used in the Medical Expenses Worksheet was $3,179, a difference of $1. I don't know where that $1 came from, but I'm okay with not knowing that. I think (I hope) I finally understand how this works.
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