Review says "Shared Policy xxxx allocations for a form 1095A linked to a business... are not supported." What do they mean by "not supported" ?

[tk94110]

I am self employed and I have a shared Obamacare policy in which I am the main policy holder and my adult son who is not on my tax and I are the members.

The Review feature of TT Online show these complains:

• Form 1095-A - Insurance Exchange (xxx) Social Security Number policy allocations for a form 1095A linked to a business, Business Related Premiums Smart Worksheet below, are not supported.
• Form 1095-A - Insurance Exchange (xxx) Shared Policy SLCSP Pct policy allocations for a form 1095A linked to a business, Business Related Premiums Smart Worksheet below, are not supported.
• and similar for other two numbers.

(xxx is probably a long number, perhaps a policy number?) What does "linked to a business" mean? What does "not supported" mean? Does it mean it is allowed by law but TT doesn't know how to handle it? Or it is not allowed by the law? If former, I should just stop using TT and find a CPA?

[ThomasM125]

You have a small business and also have insurance through the government exchange, evidently. This creates a complicated situation, and then you also share the policy with someone else, which makes it even more complicated. 

You can deduct your health insurance premiums directly from your income since you are self-employed, but the deduction is limited by your premium tax credit, which is reported on your form 1095-A. That calculation is complicated enough by itself, but when you throw in another person on the policy and have to do that allocation as well, TurboTax cannot process that calculation.

So, when the message says "not supported" it means it cannot be processed by using TurboTax. 

Often this occurs when there is disagreement on the way to interpret regulations promulgated by the IRS. In other words, the regulations are not clear, so TurboTax cannot find a reliable enough interpretation to provide that calculation in the program.

You can choose to report all of the insurance information from the form 1095-A on your tax return, and that should resolve your issue and provide for the correct calculation of your self-employed insurance deduction and premium tax credit refund or repayment. 

[shellyihall]

Did this answer help you? I have the same situation and I am not sure what to do. If I am not the main policy holder, but paid for all of the premiums and the other insurance holder paid for none....

[Shallow water]

So does than mean toss Turbo Tax in the dumpster and go see a tax pro ? 

[Critter-3]

Please use the following link to contact Customer Support for further assistance... they may have a workaround like using the Downloaded program to make direct entries in the FORMS mode...

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[Marc-1]

So what is to be done?  I waited an hour to contact with Intuit, I'm on with them now and I don't think I am going to successfully get help.

[BillM223]

@Marc-1

What is your issue?

TurboTax supports a Schedule C business reporting a Marketplace policy ("linked to a business"), and will automatically transfer the net amount to the self-employed health insurance deduction on Schedule 1.

Are you getting an error message? What is it?

[Marc-1]

I anticipate allocating the health insurance 1095-A information with adult children under my policy.  It appears that the isn't set to do both.  I was escalated to a tax advisor who was not able to help me.

"Form 1095-A- Insurance Exchange (83774775): Social Security Number policy allocations from a form 1095A linked to a business, Business related premiums Worksheet below, are no supported."

[3srwild]

I have the download version and have the same problem.

Self-employed making around 50K, a Marketplace health plan with subsidy and 20-year-old non-dependant son on the plan.  Turbo tax says the situation is not supported.

[MaryM428]

TurboTax does not support entering a 1095-A as a business deduction when there is a non-dependent sharing the marketplace plan.  

You could enter the 1095-A in TurboTax without associating it with the business and indicate you shared it with someone not on your return.  But it then will not be associated with the business and the premiums you pay will not be a business deduction.  

@3srwild

[prg68]

Hi, @MaryM428 

This is exactly what I want to do... NOT associate my 1095A with the business. I've searched and searched, could you tell me exactly how to do that? TurboTax perhaps did it automatically.

* I also had non-dependent daughter sharing marketplace plan, which is why I want to remove the plan from business! 

[3srwild]

But the IRS allows you to deduct the cost of health insurance for your family including non-dependant children un the age of 27 as a business deduction.  Why does Turbo Tax not support this?

[Critter-3]

The SEHI  adjustment    is NOT a Sch C deduction  and  it goes on the Sch 1 line 16. 

If you have a non dependent on the 1095-A then the you must use one of the Downloaded TT versions and make an adjusting entry on the form directly using the FORMS mode ...  this override  may keep you from efiling and will void the accuracy guarantee.   

If you are using the ONLINE version you can switch over to the Downloaded version to complete the return and you only need to buy the Deluxe version ( Basic if you don't need a state return) and save yourself some money. 

To  continue in the desktop version see this…….
https://ttlc.intuit.com/questions/1901476-how-do-i-switch-from-turbotax-online-to-the-turbotax-softw...

[Copper21]

I had this exact same issue and spent a couple hours with support working on it.  Bottom line is I de-selected the box that I shared the policy with someone not on my taxes and kept the check in the box that I was self-employed and bought a MP plan.  That allowed me to keep the SE health insurance deduction.   Also, at the federal level for 2020 the IRS is not seeking repayment of APTC so allocating the policy subsidies seems irrelevant.  Indeed, my refund amount did not change when I did this.  I was allowed to allocate on the state return which did reduce the amount of subsidy I had to pay back as the state did not waive repayment like the feds did.  I e-filed them and they were accepted.  I think the resulting returns are accurate.  TT needs to support this area as it is common and by no means too complicated for them given their size and resources. 

[Daddude]

I have this same problem in 2021 when the graduated income/repayment caps are in place. Reading this thread it sounds like it was too complicated for TT to figure out so clearly I should do it on my own. My options appear to be: 1) allocate manually using instructions TT does not provide and I have not yet found and then print and file since TT will still error out the issues they don't want to address; Do I get a rebate on what I spent on TT that I cannot use?; 2) remove it from my business and give up the enormous business deduction; 3) remove the allocation and wait for the IRS to correct it and fine me. Pretty unhappy with TT right now.