Good morning,
RE-POSTING THE SAME QUESTION, PLEASE DO NOT ANSWER WITH TURBOTAX CONTACT NUMBERS
I was receiving Unemployment Benefits in California in October - December 2021 and also received Premium Tax Credits from Covered CA for my spouse and myself in December 2021. Filed tax return with TurboTax H&B Desktop Mac in April 2022, but made a mistake in form 8962 by reporting Premium Tax Credit for the spouse only, but not for myself. TurboTax did not add Premium Tax Credit to total federal tax (line 24 of Form 1040) despite the fact that our AGI was about 200K, i.e. well above Covered CA thresholds.
One week ago received a letter from IRS asking to pay back Premium Tax Credit for my spouse. They said they had found an issue with "taxpayer identification number" and "changed your tax family size on line 1 of Form 8962" (apparently from 2 to 1). I just corrected Form 8962 by adding Premium Tax Credit for myself, but the total tax calculated by TurboTax stayed the same.
American Rescue Plan Act of 2021 is saying something about special treatment of individuals who received unemployment benefits in 2021 and I tried to uncheck the box on Line A of Form 8962 to see if it had any impact on the calculated federal tax but TurboTax prevented me from doing so.
Could you please advise if TurboTax Desktop is right in this situation, OR we indeed did not qualify for Premium Tax Credits in 2021 and need to pay them back to IRS?
