My Form 8962 Premium Tax Credit seems to not be calculating properly (1095-A is input)

[soundoflaughter]

Hi, I have an issue where I think my form 8962 is not properly calculating my premium tax credit.  I've entered my 1095-A forms (ACA health premiums), but the form is not finishing the calculations as I understand they should be done, and I can find no way to override to perform the calculations myself.  I'm locked out from manually finishing the calcs.  Columns A, B, and C seem right, but the calcs don't continue. 

Normally these tax credits make a big difference on our taxes as I pay out-of-pocket without premium assistance and count on the tax credit/refund to help fund ongoing health care premiums.  It seems I currently am not getting tax credits for paid 1095-A premiums.

I've attached a photo of what I'm seeing, and what I think the form 8962 should be calculating.  I've searched the forums and seen other comments around this form, but this issue seems different to me?  Appreciate any comments.  It seems to be a problem to me but don't know what to do.  I'm on Turbotax Home and Business 2022, Windows 10 desktop.

 

[HopeS]

TurboTax will not accept blank boxes for Form 1095-A columns B and C. If someone has a 1095-A with nothing in columns B and C, they do not need to include 1095-A on their return. However, just to be sure that is your case, we suggest that you contact Marketplace and verify that there was indeed no subsidy and that the form is correct. Once they verify that, you can go ahead and delete the form and not include it in your return.  Once deleted you can proceed with e-filing.

Delete the Form using these steps:

1. Select Tax Tools from the left menu, then
2.  Tools, then Delete a form. 
3. You shouldn’t see Form 8962 or Form 1095-A in the forms list.
4.  If you do see these forms, select Delete next to the name of the form to remove it from your return

@soundoflaughter 

[soundoflaughter]

I guess I'm confused.  I need to enter the 1095-A forms in order to generate my premium tax credit.  Are you saying I cannot do my return in Turbotax if I need to enter my 1095-A forms?  Or am I not eligible for the premium tax credit.  Can 100% confirm there was no subsidy.  I've done it this way for years.  Thank you for the reply,  just hoping I can finish my taxes with Turbotax and still calculate the premium tax credit.   Thank you.

[TeresaM]

If the Marketplace database shows you receiving a Form 1095-A when they share that with the IRS, your e-filed tax return will be rejected unless it includes this information. They require that you enter it in your return so the calculations can take place on Form 8962, even if you know there will be no Premium Tax Credit. 

 

[soundoflaughter]

edit:  I think I found solution, putting at least $1 in the cells for column C of 1095 for "monthly advance of premium tax payment" makes the form calculate.  I think that will work  😉  relieved if so - but I think it'll work that way.

Thanks to you also for the reply.  Based on the image above, does it seem correct that form 8962 simply is not calculating correctly in Turbotax as I've annotated in image attached to first post?  Assuming rows A,B and C are correct (I think they are and Turbotax has no reason to doubt them), I feel like line 24 should calculate to $12,611 (the sum of my monthly health ins payments).   I'm trying to understand if this is a bug, or if maybe Turbotax can't handle my situation?  thank you, this just doesn't make sense to me as I've done this similarly in previous years and it has worked differently.

[soundoflaughter]

edit: Just to test I went in and put $1 in column C (instead of $0) for "monthly advance payment of premium tax credit"and the form started calculating.  In case anyone else is reading - I think that may be the solution to make the form work.  Thanks for the comments.

[soundoflaughter]

On reflection - in case anyone from Turbotax reads this -  I think what is described above could be an issue for many filers with 1095-As who have no ($0) prepaid premium subsidy in column C of the 1095-A.   I can't be the only person who doesn't apply for prepaid premium subsidy on health insurance and who has $0 for column C prepaid premium subsidy amounts.      

[TeresaM]

Indeed, if the IRS is insisting on a Form 8962 and the Marketplace insists they have no record, that is the work around to get the return to be accepted for e-file.  Those do need to be checked though because if there is a problem in the database, the IRS will route it to Form 8962 research and it slows the return processing. 

If you are sure you does not need it in your return , try this workaround to e-file the return with an empty Form 1095-A and 8962.   There will be no credit applied to your return.  The Form 1095-A detail will not be included on the return, but you should be able to e-file.   The workaround is to:

1. Answer Yes to the Did you get a 1095-A? question
2. Enter 0's for the Marketplace identifier and policy number, and $1 for the January amounts
3. Leave the remainder of the months (Feb-Dec) blank

There is additional information in this TurboTax Help article about Form 8962 rejections. 

[soundoflaughter]

Thanks - I feel like I know what I'm going to do - and to be clear for any who search on this topic - I haven't filed yet, but do need to file multiple 1095s to get my premium tax credit.  Changing the prepaid subsidy from $0 to $1 changed my tax bill by over $10,000 due to the $1 causing the form 8962 to calculate.  I suspect many who have $0 in the prepaid premium subsidy column of the 1095 are going to miss this as the form is hidden in background unless you know to look for it to see what is happening.

thanks everyone for the help on this and giving me the ideas to solve what's happening.  

[ibaens]

I'm having the same issue. I did not take the premium tax credit upfront when I signed up for my health care because I wasn't sure how much I'd make in 2022. So my column C is 0. Like you I discovered that the 8962 form never even generated after filling out the 1095-A form with column C as zeros. But when I put in 1.0 for January's column C, it created the 8962 form and applied the right credit for me line 26. 

Have you been filed already doing this method? Did you come across any issues? 

This has to be a bug. I might be mistaken, but the IRS says that if you took less premium tax credit than what you are supposed to receive, then you'd get it back when you file your taxes. 

[soundoflaughter]

Hi, I had all 0s for column C like you, and filed maybe a week or two ago with $1 in column C subsidy like you mention.  It was the only way to make the form calculate that I could find and didn't know what else to do.  My return was accepted.  I've done it similarly in prior years (with no advance subsidy amount to report) so I don't expect issues, but it's only been a few weeks since I filed.  I don't know why turbotax changed how it it worked this year.  

I also don't like to take subsidy up front because I don't know what income will be. 

[ibaens]

thanks for you response and starting this thread. I did learn something after researching further. The form didn't populate correctly for me because I was under the 100%-400% range of the Federal Poverty Line (I realized a bunch of losses that took me under). As a test, I created a test income source to put my AGI within that range and the 8962 form populated (with column C all 0.00) "correctly". So I guess I didn't make enough to qualify for the PTC. 

[dianeandjohn]

I am over the 400%, and I'm not able to deduct the entire amount of my insurance premiums.  

[MarilynG1]

Yes, for 2022 taxpayers with income over the 400% FPL will be able to receive a Premium Tax Credit, if otherwise eligible.

Since we can't see your return in this forum, review the calculations on Form 8962.

Here's more info on How is the Premium Tax Credit Calculated.

@dianeandjohn 

[solana314]

Thank you so much for sharing. I was having the same issue with data from 1095-A not populating in 8962 and thus not giving me the refund for the premium tax credits that we qualified for but didn't received during the year.  Putting $1 in January fixed the problem too. It is now 2025 and I am doing 2024 taxes, so the issue still hasn't been solved years later, but your fix solved it for me!