Glitch in Form 7206

[doubleO7]

@klma : We may have to mail the forms. Issue likely not to be resolved by tax deadline.

Refer

https://ttlc.intuit.com/community/taxes/discussion/re-efile-rejected-with-code-r0000-058-01-this-app...

[doubleO7]

@SS77771 : 

Issue hasn't been resolved in 3/28's update and unlikely to be resolved by Apr.15

Need to mail the forms.

Refer:

https://ttlc.intuit.com/community/taxes/discussion/re-efile-rejected-with-code-r0000-058-01-this-app...

[doubleO7]

@klma : 

Issue hasn't been resolved in 3/28's update and unlikely to be resolved by Apr.15

Need to mail the forms.

[SS77771]

Someone on another post shared this workaround, and it works for me (using TT Online)!

Go to Deductions & Credits -> Affordable Care Act (Form 1095-A)  -> Edit -> Continue.  The problem is the pesky "I'm self-employed and bought a Marketplace plan" box.  I unchecked that box.  Then I went to Wages & Income -> Self Employment -> Add Expenses -> Health Insurance Premiums and entered the total premiums paid, which in turn generates a CORRECT (hallelujah!) Form 7206 and restores the deduction to Schedule 1, Line 17.  And it does not double-deduct (the Turbotax warning not to enter Marketplace premiums in that spot assumes you checked the "I'm self-employed and bought a Marketplace plan" box on the 1095-A page .. so long as that box is unchecked, there is apparently nothing wrong with entering it via Wages & Income -> Self Employment -> Add Expenses -> Health Insurance Premiums.)  I did a side-by-side, line-by-line comparison of my prior draft return and the new draft return, and everything is now correct!

This workaround also solved another problem I had.  TT was rounding each monthly premium on my 1095-A, and then adding the total of the rounded monthly premiums, resulting in a lost $3 deduction on Schedule 1, Line 17 (the amount was $3 less than the actual total annual premiums).  Now that the total on Schedule 1, Line 17 is correct (with that extra $3 deduction), my total tax liability decreased by $1. 🙂

Very happy I can finally file my taxes, just in time.

[randcoolwalk]

This is great. I used a similar approach to solve my issue. Hope this post can help someone:

problem: only k-1 from s corp, no schedule c, having health market health premiums. turbotax online generates a bad form 7206, line 1 is empty.

To solve: Go to Deductions & Credits -> Affordable Care Act (Form 1095-A)  -> Edit -> Continue.  The problem is the pesky "I'm self-employed and bought a Marketplace plan" box.  uncheck that box. 

Then go to Wages & Income -> schedule k1 -> edit ->S corporations  (update) -> edit -> continue until you see "Other Situations" , check "I personally paid health insurance and/or long-term care insurance premiums for myself and my family and this S corporation paid me wages", -> Health Insurance Premiums You Paid Personally, enter the correct amount (amount you paid plus any credit you might need to pay back, basically the same number when you associate marketplance 1095-A with s-corp). 

This will generate a correct form 7206

[dsmccar]

Does anyone know if this issue has been resolved in the desktop version?  I filed for an extension, but when I pull up my return, I still see Form 7206 which is (a) not necessary since there is only one source of Schedule C income and (b) not filled out correctly, since line 1 is blank.  I still can't delete 7206, and populating line 1 causes an excess deduction.  I can't believe that 4 weeks after taxes were due, this problem has still not been resolved.  Should I attempt to file as is and see if I get a rejection?

[JotikaT2]

I recommend trying to update your program first if you are using the desktop version to ensure your program is up to date.  Once you do that, try electronically filing again.  

If it does not go through, you always can mail your tax return in.

@dsmccar 

[BAY AREA BOOKS]

Thank you for your work around on this! I have spent a lot of time going through the different threads on this issue - not one TurboTax rep listed these steps!! It seemed like their only solution was to run an update. Kudos to you randcoolwalk!!

[daveneedsanswers]

It's JANUARY 25, 2025 and Form 7206 is STILL marked "not done" and unable to e-file (on desktop Home & Business).

UPDATE: I'm now seeing a note on the screen that says Form 7206 will be ready to file on 1/30/2025, so perhaps this isn't the same glitch, but a planned update.

UPDATE 2: I've downloaded the 1/30/2025 TT update and the form 7206 is no longer generating an error and appears ready to file. I apologize for jumping the gun in my original comment.

[iusdcm1]

Are you trying to file 2024 or 2023 taxes?  This form never worked correctly last year, I was hoping they would fix it for 2024.  

[daveneedsanswers]

I'm trying to file for 2024, and the problem is still not fixed.

Please note that I'm now seeing a note on the screen that says Form 7206 will be ready to file on 1/30/2025, so perhaps this isn't the same glitch, but a planned update.

UPDATE:  I've downloaded the 1/30/2025 TT update and the form 7206 is no longer generating an error and appears ready to file. I apologize for jumping the gun in my original comment.

[CatinaT1]

This is scheduled to be available on Jan 30. Please continue to watch the forms availability link below.

Use this link to reference when your tax forms will be available. You can search by TurboTax Product and for IRS and State-Specific Forms.

[SS77771]

Beware everyone!  I just got done filing, and it appears the issue is back.  But this year, instead of not carrying over, it DOUBLED!  Don't ask me how, but my Form 7206 Line 14 was correct; however, when I audited my Schedule 1, Line 17, it was DOUBLE the amount!  How and why?  Who knows!  But I remembered there was this issue last year, so I went back to that pesky "I'm self-employed and bought a Marketplace plan" box on Form 1095-A, unchecked that box, and voila, the Schedule 1, Line 17 amount magically matched my Form 7206, Line 14!  When will you get it fixed, TurboTax?

[lac528]

For self-employed people filing Schedule C's with marketplace plans, TurboTax is not even filling out Line 1 on Form 7206 at all. And instead of completing the form fully, it's putting a footnote referring to the marketplace insurance at the bottom that can be seen in Forms mode. Since TurboTax is often coming up with blatantly incorrect SEHID when using the iterative method at a variety of AGIs, I've tried unchecking the box linking the health insurance plan to the business and then gone into Form 7206 in Forms mode and manually put what I think the correct SEHID is in Line 1. This then leads TurboTax to finish completing the form and put the correct SEHID on Schedule 1, Line 17.

Does this seem like a good workaround? My return still passes the reviews on TurboTax after doing it. But I don't know if for some reason the IRS would reject it when I try to e-file?

[DawnC]

If there are no errors when you go through the Complete Check, you will be able to e-file the return.  

Where do I enter my health insurance premiums if I'm self-employed?