Has anyone else encountered a bug in TT 2022 Deluxe Desktop in Form 8962 where Line 11 Annual Totals are blank except for 11F? This results in Line 29 being wrong.

[Harold500]

Line 11 Annual Totals should be computed from data entered from Form 1095-A entries into Turbo Tax.  Line 24 should be based on 11 E which is computed from Line 11 Annual Totals

[Polkadot1]

Very long discussion of this topic here:

https://ttlc.intuit.com/community/taxes/discussion/re-turbotax-2022-form-8962-premium-tax-credit/01/...

[Harold500]

Thank you for the information, obviously TT needs to fix.

What I'm not clear on is whether you still get the PTC for 2023-2025 if your income is over 400%?  Do you have any insight on this? 

Thank you

[Polkadot1 · Accepted solution]

Yes, Biden signed the Inflation Reduction Act, which did eliminate the 400% "cliff" through tax (calendar) year 2025.  Here is a writeup of the issue:

Eliminating The Subsidy Cliff

ARPA expanded the availability of premium tax credits (PTCs) to millions more people by eliminating the Affordable Care Act’s (ACA’s) subsidy cliff at 400 percent FPL (about $52,000 for an individual or $106,000 for a family of four). Individuals and families above this income level were not previously eligible for PTCs, leaving many middle-income people—especially those who are older and live in rural areas—with extraordinarily high premiums.

Under ARPA, those whose income exceeds 400 percent FPL are eligible for PTCs if the cost of premiums exceeds 8.5 percent of their household income. This provision does not subsidize the richest people, whose premium burden generally does not exceed this threshold. This part of ARPA has had a significant impact: marketplace enrollment by middle-income consumers increased by 4 percentage points from 2021 to 2022, rising to a total of 1.1 million people. By extending this policy through the end of 2025, the IRA will ensure that middle-income people who purchase their own health insurance do not pay more than 8.5 percent of their income towards premiums alone.

[Harold500]

Thank you and is what I understood with the extension in the Inflation Reduction Act.  I was confused by a comment on the other thread implying the "cliff" removal was only for 2021 & 2022.

Would not make sense the "cliff" removal was going away for 2023 since the Marketplace Calculator PTC does not go to zero if your estimated income is over the "limit".

Thanks again, you have been very helpful.

[Polkadot1]

Correct.  Both ARPA (which was just for 2021 & 2022) and the Inflation Reduction Act (2023, 2024 & 2025) have those of us who make over 400% of federal poverty level capped at 8.5% of income for  health insurance premiums, with the remainder being subsidized by Uncle Sam.  In addition, those under 400% get to continue enjoying the "enhanced" subsidies, meaning they pay less for health insurance as well, compared to the previous formula.

This has been singed into law, and should be considered settled as far as TurboTax software developers are concerned.  Unfortunately, one of the Premium Tax Credit webpages on IRS.gov and their Instructions for Form 8962 cobbles together old and new language on the 400% cliff.  This IMHO has led to confusion among TT staff and customer service reps, some of whom are saying that the software (as is) is working flawlessly.  They are having difficulty understanding what Congress wrote and passed with both ARPA and the Inflation Reduction Act.  I'm not entirely confident they will fix Form 8962, given all the mixed messages we've received.

[Critter-3]

Look at the 8962 ... in the TT program is doesn't allow you to enter the annual totals just the monthly amounts thus the line 11 on the 8962 is never used in the TT program like it is in my professional program where I only

have to enter the annual totals for each column (if they are the same each month) but either way you get the same result  on line  24 ... (within a couple of $$ for the rounding)