2021 ACA repayment limitation on form 8962, line 28

[PSM1]

I was on an ACA plan with advanced ACA premium tax credits, Jan through June, 2021.   My wife was already on Medicare since 2020, so, two of us in the household.  I went on Medicare July 1, and later on, decided to withdraw a lot from our IRA's and rebalance our assets in 2021.  Since I knew I was going to have an income greater than 400% of the poverty level, and my insurance premiums weren't greater than 8.5% of the household income, I fully expected to repay the whole $5884 in advance credits for my ACA policy.  To my surprise, when plugging in form 1095-A numbers exactly as shown, Turbotax is showing a $2700 repayment limitation on form 8962, line 28.  Since I had paid what I thought I would owe in advance, now I  receive a decent refund if Turbotax is correct.

There is no data source for their use of that number except the IRS instructions, which to me seems to indicate that anyone over 400% and paying less than 8.5% for their policy would have to repay their premium tax credits fully.  What am I missing in my thinking?  Some sort of forgiveness for being on a policy for half the year?

[dk82]

I and others and have raised this same issue in other posts. Form 8962 wasn't available in TurboTax until yesterday, Jan 20, and there appears to be a bug. Those with AGI > 400% FPL are being classified in the 300-400% FPL bracket and repayment limitations of $1350 single / $2700 married. I would assume it'll be fixed in the coming days.

[GeorgeM777]

Additional review appears warranted.  In this regard, below are instructions on how to obtain a token number which can be used to retrieve a copy of your tax return for further review.  The retrieved return will not contain any of your personal information as such information is deleted before review takes place (the return you have prepared will still contain all of the information you entered as deletion of personal identifiable information only happens when TurboTax retrieves its copy of your return for review).    

Here are the instructions on how to obtain a token number whether you are using TurboTax Online or the TurboTax Desktop/Download version.

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen. 
3. A drop-down will appear. Select Tools  
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number that was generated in the response.

As a reminder, in any follow-up response do not provide any personal identifiable information.  

[TeresaM]

Our team is working on updating the  Premium Tax Credit repayment limitation area. Please see this TurboTax Help Article with a link to sign up to receive updates.  Notifications for Premium Tax Credit Repayment Limitation

@PSM1