TT 2021 Form 8962 - Error calculating repayment limitation?

[dobretsberger]

Still the same problem. 

Revisited 3x.

Just got my 4th rejection. 

This is insane, I even checked the physical fields in the forms that are supposed to be submitted, and the numbers there are correct. It's a bug in TurboTax. 

Long time customer, but if this doesn't get fixed, H&R Block isn't far...

[Pattitann44]

I wouldn’t trust H&R either.  I checked TaxSlayer and a couple of other tax software companies.  Oddly enough, same problem with all of them.  I gave up and filed a paper return. It was the only way you don’t get ripped off. I’m still waiting for Turbo Tax to return my money.  Not paying them for faulty software.

[dobretsberger]

I might do the same then. 
I can't even reach CS from TurboTax. Like it's impossible to file a dispute with them.

I might just do a CC chargeback and tell my CC company I paid for a service that wasn't delivered and I want the charge revoked. 

[Pattitann44]

You’re lucky. I submitted a refund request on Turbo tax over a week ago.  Crickets. I used a debit card so I guess I’m out of luck.  I’ll never use them again.  And I will forever file a paper return from now on. I’d rather wait two months for a refund than pay more tax that I don’t owe!

[Bill2022]

I am preparing a return on Turbo Tax 2021 CD desktop:  Although the Form 8962 Line 28 repayment limitation seems to now be fixed, there still seems to be a related problem with the Self-Employed Health Insurance Deduction on Schedule 1 Line 17.  The TT calculation is acting as though the repayment of the Excess Advance Payment of the Premium Tax Credit is still limited to $1350 (single) even though Form 8962 Line 28 repayment limitation has been removed.  I have checked that this is not a problem in getting the optimal value via the Iterative Calculation Method. The Self-Employed Health Insurance Deduction is being calculated as the amount already paid for health premiums plus a repayment of $1350.  This results in a much lower value because the actual full Excess Advance Premium Tax Credit Repayment (Form 8962 Line 29) is much more than $1350 in my case. 

[Sandwisch]

There still has to be a big error in form 8962 for calculating the premium tax credit for health insurance.  My MAGI on line 2a is $266,451 which is correct.  It's also my household income on line 3.  Line 5 says my percentage above the federal poverty line (line 4) is 133%.  That's ridiculously off.  $266,451 is 2088% above line 4 poverty line of $12,760.  Line 5 should be 2,088% and I calculated it using the instructions on the IRS website for form 8962.

Currently TT wants to give me a $5,250 premium tax credit when I should get $0 tax credit.  I got $0 in 2020 and in 2021 I have double the income plus big capital gains for a much bigger 2021 MAGI. 
I can't file my taxes until this gets fixed.  What is the status of the fix?

Also because TT thinks I should pay 0 for health insurance (100% premium covered) then I am not getting the self-employment deduction of the money I actually did pay.  I should not get any premium tax credit and I should get the self-employed health insurance deduction. 

[JPeterO]

First note that line 5 can never be more than 401% - see the instructions for Form 8962, Worksheet 2.  If the amount on line 3 divided by line 4 (times 100) is more than 401, you put down 401 and then line 7 will be .0850.

If you are showing 133% on line 4, it may be that you have claimed to have received unemployment compensation in 2021 - see the instructions for line 5.  So make sure on your Form 8962 that you have not checked the box by "A" at the top of the form that asks about this (if you use the interview process in TurboTax, when you get to the Affordable Care Act/Form 1095-A section, the first question that is asked is if you received unemployment - be sure to have answered that question correctly).

[Bill2022]

My Form 8962 line 5 is 401%. Line 29 Excess Advance Premium Tax Credit Repayment is $3,500 with Line 28 Repayment Limitation blank.

However Schedule 1 Line 17 incorrectly calculates the Self-employed Health Insurance Deduction as though the Form 8962 line 28 Repayment Limitation is $1,350 (single) even though it is blank.  Any idea when TT will fix this?

[Sandwisch]

Technically I received unemployment for a couple weeks in January 2021.  I started the unemployment in 2020 when everyone in my industry had no idea if we would have jobs.  I am self-employed.  I received unemployment in 2020 only for weeks I did not make enough form my job.  That same thing happened in 2021 at the very beginning.  Once my 1 year anniversary hit for unemployment, I didn't continue it as my income had been consistent for several months by then.

The question is tricky and a little unclear.  I started unemployment in 2020 and the same claim continued (and ended) in 2021.  I did receive unemployment for 2 weeks during 2021.  If the question is asking when did unemployment begin, then I should answer no since it began in 2020, not 2021.  If it's asking if I qualified and received unemployment in 2021 then the answer is yes.

The phrase "beginning during 2021" is unclear.  Is it "beginning in 2021?" or "during 2021".  It doesn't say "beginning OR during 2021".  It seems bad grammar to me.

I read the instructions from the IRS on form 8962 and they use the same language.  The IRS says to see pub 974 for more information.  As of this reply, form 974 is being update and not available.

It seems hard to believe that I would be entitled to a premium tax credit solely because I received 2 weeks of unemployment when my final 2021 income was well over $250k.  Without my capital gains, my actual income from my job was still over $110k.

How do you interpret the unemployment question given my above comments?  I do have a 1099-G for unemployment and it is in TT so TT knows I had unemployment income for 2021.

Even if TT is doing it correctly and for some strange reason I get a premium tax credit despite my high income, I still have errors on form 8941.  TT has marked "NO" for question A which then means do not file form 8941.  Question C does not have an answer and I don't remember skipping any question in the step by step method.  The smart check flags this non answer as a reason I shouldn't file.  Where are the questions I need to answer to fix this?

I have no employees and I buy my health insurance from Covered CA.

***EDIT***

I found another answer on here that suggested that everyone who got unemployment or qualified in 2021 and has a marketplace healthcare plan has line 5 set to 133% per one of the rescue packages passed by congress.  I haven't found an official source yet but I guess it's for 2021 only and it doesn't matter what your final income is.

I still have the 8941 problem to solve to get TT to say my return has no errors.  I could just say no to question C and TT might think I'm good to go but confirmation would be nice.

[shiblak123]

PLEASE LET ME KNOW HOW TO CORRECT FORM 8962  ERROR SO I CAN FILE MY TAX RETURN.

THANKS

[MarilynG1]

Click this link for info on Recent 8962 Errors.

If you are using TurboTax Online, close TurboTax, clear your Cache and Cookies and re-try.

 If you can clarify the Form 8962 Error you are receiving, we'll try to help you.

@shiblak123

[Stacey7331]

@MarilynG1 

I did not receive any unemployment and answered no to the question, but my line 5 was still calculated to be 133% (which is not true). My federal return was accepted on 1/26 but still unprocessed by IRS. Is there a way to find out why this was calculated that way and fix it if needed?? I read that it was going to be automatically corrected on 2/3 but I never received any notice and mine was never corrected?

 Thanks in advance!!

[RobertB4444]

@Stacey7331  You don't need to do anything yet.

The IRS is reviewing tax returns and it may take a while - especially if you have a premium tax credit from the marketplace health insurance or if you entered the incorrect amount for stimulus payments or child tax credits.  

Either way they will process your return and issue you whatever refund they feel that you are supposed to get. If there is a change that needs to be made to your return ar a change that they have made to your return then they will not only alter your refund but they will send you a letter notifying you of what they changed and why.

Once they have finished processing your return then you should amend it if you need to.  Not before.  The IRS is already backed up and delayed on processing your tax return.  Submitting an amendment will slow down processing your return even more.

[Stacey7331]

@RobertB4444 

Thank you for taking the time to respond. I understand the IRS is delayed. I am mostly concerned about correcting the error as to avoid any consequences. I will just be sure to keep an eye out on the mail for a notice!

[dk82]

To anyone who's SELF-EMPLOYED who encountered this issue (FPL >400% w/ erroneous $1350/$2700 repayment limitation), please note that this error also impacts the self-employed health insurance deduction. While my repayment obligation (1040 Schedule 2 Line 2) is now correctly listed as my full premium tax credit ($4972), the self-employed health insurance deduction (1040 Schedule 1 Line 17) is still using the incorrect $1350.