Medical Expenses Worksheet Question (Line 2b)

[Anonymous]

This is my second year on an ACA policy, but the first year where I might be able to itemize my deductions. I'm able to reconcile everything that TT is doing (TT desktop on Windows) other than the Medical Expenses Worksheet. I'm reasonably sure that it's user error, but I just cannot find a way to make the numbers add up, so would be grateful for any assistance.

From my 2022 1095-A Annual Totals:

• Column A: $8,713.32
• Column B: $10,567.20
• Column C: $4,935.00

From my 2022 Form 8962 Annual Totals:

• Column (a): $8,713
• Column (b): $10,567
• Column (c): $5,034
• Column (d): $5,533
• Column (e): $5,533
• Column (f): $4,935
• Line 24 - Total Premium Tax Credit: $5,533
• Line 25 - Advance Payment of PTC: $4,935
• Line 26 - Net Premium Tax Credit: $598

Medical Expenses Worksheet

• Line 2b: $3,179

Total annual premiums actually paid: $3,946

In my first pass at the questions, I included the $3,946, since I didn't know that TT was doing some behind-the-scenes calculations. That gave me a total health insurances premium number that was far too high. However, if I don't include it, it seems to me that the number that TT has calculated for Line 2b in the Medical Expenses Worksheet is too low.

I can't make sense of these numbers. Help, please? Thank you.

[TeresaM]

TurboTax will indeed include information from your Form 1095-A form into your Medical Deductions information. Do not enter your premiums again in the deduction section. 

The total of your Premium Tax Credit will be subtracted out of the total cost of the policy.  Your actual payments of $3,946 are credited with the additional Premium Tax Credit that is applied on your return, since your estimated Advanced Premium Tax Credit was low. 


 

[Anonymous · Accepted solution]

I figured it out, although there is still a $1 discrepancy. I can live with that.

There were three issues, one an accounting error on my part, the second an extra credit card fee that the insurance company was charging me for paying my bill by credit card (a fee that I cannot include in my premium paid), and the third a premium tax credit.

I reported in my initial post that my total annual premium paid was $3,946. I made a mistake in one of the monthly premiums that I was tracking. My premium assistance was reduced in April, 2022, due to the updated AGI from my tax return. I had mistakenly moved that reduction to March, 2022, meaning that my figure for March was incorrect, over by $133. Adjusting that reduced my annual premium paid to $3,813.

The second issue was a monthly $2.92 credit fee, an annual total of $35.04. Removing that left me with an annual actual premium paid of $3,778.

Finally, when calculating the premium tax credit, the figure was $598.00, essentially a refund of premiums paid. I can't include that in my annual actual premium paid figure, so removing that leaves me with an annual actual premium paid of $3,180, rounded to the nearest dollar.

The figure that TT used in the Medical Expenses Worksheet was $3,179, a difference of $1. I don't know where that $1 came from, but I'm okay with not knowing that. I think (I hope) I finally understand how this works.

[Movie-Nut]

I have a similar issue but different. On my form 8962 line 29 excess advance PTC repayment I have an amount of $950. This amount is added into my tax owed on Form 1040.

My question: IS this excess repayment of $950 added to my actual personal payments of $3795 to arrive at a Line 2b of $4745 on the Medical Worksheet???

TT does not show this actual calculation anywhere.

[BrittanyS]

Can you clarify if your using TurboTax Desktop or Online?

@Movie-Nut 

[Movie-Nut]

Desktop 

[BrittanyS]

You can view your medical worksheet on TurboTax Desktop by click forms in the upper right corner.  From forms mode, you review the medical worksheet.  Line 2b should match your premium paid listed on the 1095-A minus any premium tax credit received.  

For more information see the link below:

• Medical Expense Checklist

@Movie-Nut 

[Movie-Nut]

It does NOT match the 1095B 1095-A numbers. That is my issue. The only way I can get to the same number listed on line 2b is to add my actual payments (1095b  1095-A, Column A less Column B) plus the amount shown on Schedule 2 Line 1a (Excess Advance Premium tax credit repayment (from form 8962). However Turbotax does NOT show this calculation anywhere. I assume this is how Line 2b is derived, but would like confirmation. Please see my original post for details.

[DawnC]

1095-B does NOT get entered into TurboTax.    Only 1095-A forms get entered.   Delete any entries that were not on 1095-A.   Keep the 1095-B with your tax records.   @Movie-Nut 

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

[Movie-Nut]

My Mistake. I meant 1095A not 1095B in all my previous posts on this issue. If I can I will edit them.

[DMarkM1]

Yes, the excess premium tax credit is added to the premiums you paid to arrive at the number on line 2b on the Medical Expenses worksheet.   In Desktop versions in forms mode right click on the line (box) and select "Data Source".  A pop-up box will appear showing the source/calculation for the item.

[Movie-Nut]

Thanks, that was my assumption, but now I can see the math that supported my assumption.

Thanks, again.

Larry