Form 7206 Line 14 Not Translating to Schedule 1 Line 17

[MPT47]

I received an update from TurboTax that "Subject Matter Experts [are] saying that there is not an issue and that it is pulling across correctly as it shows on separate forms." A bit concerning because the heart of the issue seems to be that the number from form 7206, line 14 is NOT pulling across correctly to schedule 1 line 17. However, they also say an IT investigation is ongoing. 

I have to hope that either IT confirms this is a bug, and fixes it, or we get a cogent explanation for the discrepancy that's based on IRS guidance (not just "it's fine") and we can go ahead confidently with filing. 

[iusdcm1]

Thanks for the update. I agree 100% that form 7206 line 14 is incorrect.
Also, if form 7206 is not needed, it still ends up in the forms e-filed with the IRS and there is no way to delete it. 

[MPT47]

Still no word from TurboTax on this. Very frustrating given this issue has been open for weeks now and they give a  "100% calculation guarantee" and until proven otherwise, this is a calculation error.

I'm curious whether there is any recourse for customers who have an issue that just is never fixed? This issue alone has taken hours of time (setting aside the hours spent on initial tax prep), but I may need to find an alternative way to generate and file my taxes if this error is not fixed soon. 

[MPT47]

An update: I was able to find a workaround (on my own - no support was ever provided for this issue).

TT automatically populates Schedule 1, Line 17 with data from form 8962. This includes the premiums you pay in an insurance exchange (from form 1095-A). TT also adds any health insurance you claim as a business expense (calculated on form 7206). This can lead to double counting. How to reconcile this will probably depend on your specific situation and whether or not you claim the premium tax credit.

TT (online version) produces no warnings for this issue, no explanation is provided on the tax return, and messaging / explanation of where to claim these expenses is minimal. This ended up being a huge time sink and I suspect some filings will be inaccurate as a result. Shame.

[mchishol]

I am having the same issue, what was the workaround?  How did you resolve it?

[MPT47]

With the caveat that I'm not a tax professional, it seems like the only solution is to remove one of the insurance expenses: either under your business expenses, or by deleting form 1095A. This would only apply to health insurance costs that appear on 1095A. If you are claiming the Premium Tax Credit or received APTC, you have to file form 8962 (meaning you have to report the information provided on form 1095A).

[SS77771]

This response was just posted this morning by a "Employee Tax Expert" on another thread:

Take a look at the following TurboTax help article and click the link to register your email address for notifications as this situation is addressed: Why is TurboTax adding an incomplete Form 7206 when I'm not required to file it?

[brhix1]

My license code is 1224354.

This is in relation to a file I just sent you showing that

the last line of Form 7206 is NOT the same as Schedule 1, line 17.

Bruce Hicks

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[brhix1]

Ok, so I shouldn't worry about it, I guess.

However there are still two questions.  Let's just say I am curious?

One, why does line 14 say it should be transferred to Schedule 1 if that is not true?

Two, how did they arrive at the figure in the note at the bottom.  Is there another worksheet?

[MPT47]

In my case, I was worried about it because the additional insurance expenses claimed came from form 1095-A and TurboTax was double counting insurance payments (with no explanation whatsoever of what was happening). This may not be what is happening for everyone who has a similar problem, though.

[CatinaT1]

This is a know issue. You can sign up for updates here: Why isn't my MAGI on Form 8582 not including my full self-employment health deduction?

While this may not be your exact issue it is all related and you can sign up for updates.

[lunamoyes]

I have this problem also.  On may 24, I contacted an agent and shared my file and token.  They said that they are aware but have no answer for how to fix this.  Poor outcome to not have a solution yet.

To restate the problem : The number that I input into Turbo tax for Self employment health insurance is what shows up online inTurbotax AND also shows up on the new IRS form 7206.  My figure is $18,064.  The is on Line 14 on Form 7206 when I go to print. "SELF EMPLOYED HEALTH INSURANCE DEDUCTION".

HOWEVER, the figure on Schedule 1 Line 17 ("SELF EMPLOYED HEALTH INSURANCE DEDUCTION") is different.  My form shows $27, 944.  No way to drill down and see why this is different or what is the driver.

This could not be more simple. And wrong.

And the difference is substantial and impacts the tax calculation.

The agent apologized and suggested that I fill it out by hand!

The message below by MPT47 referencing 1095 A as the issue feels very close to the problem.

[lunamoyes]

The link to an email for update above does not work

[oc007]

Was wondering if the 7206 of 'overage' populating Line 17 became an issue with the IRS? I tried to override the number on the various forms like Schedule 1 and 1040 but was unable to... frustrating.

[couldthatbe]

@oc007 I have not had a problem with the IRS with this particular problem. This problem occurs for me in my 2023 and 2024 tax returns.  The other problem with this item is that when you print your form TurboTax's "clarification" at the bottom of Form 7206 is not present.  So to make sure I had a paper trail I went in and took a screen shot of my whole return.  This was a lot of screen shots, and if you don't want to do this at least screen shot Form 7206.