TurboTax 2022 form 8962 Premium Tax Credit

[Critter-3]

@James Br 

Originally they did change the code and then walked it back to include the 2022 tax year so the programming department simply missed that late change ... it was an error that they will fix. They  just need the time ... this is not the only issue they have to work on ... there were many other fed/state forms that were still being worked on at the same time.  Everyone here thinks that they had nothing else to do and they should drop everything else just to work on this one issue.  I am sure someone or a team of people were tasked with this situation but as I mentioned in my other post this one "simple" fix affects other parts of a very intricate program.  So do you want this done quick or done right ? 

Some folks ask why the income tax program put out early in Nov/Dec is  incomplete and partialy functional  ... one is because folks ask for it, it helps to "grab market share" from a marketing perspective,  but the best answer is so that all you eager beavers who pouce on the early program are really the unpaid beta testers who find errors in the program.  And this issue with the 8962 only came to light when the 1095-A forms were available online 1/4 and some of you higher income folks started to notice the error and posted about it.  Interesting that I saw no postings in this forum on this issue until then.  So now the issue is known and will be addressed but it will take time. 

[pdxtony]

So, as I wrote previously I called TT support, no help, they closed the case.  Then I filled out their review form and I left low scores and wrote that the ticket was closed without resolution.  To my surprise, last night a "manager" from customer support called back, apologized for closing without resolution, etc.  I explained the issue, explained how to easily recreate the issue, told him about this thread on the forum, waited on hold while he investigated, ultimately he said he didn't see anything reported about the 8962 issue but he'd look into it and call me back today.  I didn't get a huge amount of confidence as he was asking me if I cleared my caches, tried a different browser, etc. 

[pdxtony]

@Critter-3  - everyone wants it done right.  I will have confidence they know it's an issue and are working on it when they mark the form as not done (which makes it so folks can't file with it).  Until then I have my doubts they're even working on it - no matter what someone on these boards say the moderators told them.  Once I feel they're working on it I'll have some patience.

[genefrey]

I am having this same issue, appears as numbers do not flow to page two. I am unable to see if this has been fixed and when to expect it will be corrected. Any info would be greatly appreciated

Thank you

[Polkadot1]

@Tommy EV @Critter-3 @Anonymous TT rep Benjamin's misguided response (quoting IRS guidance that you get no credit once you go above 400%) seems to stem from selective reading of old and new language that the IRS has cobbled together in both the Instructions and their "Eligibility for the Premium Tax Credit" web page.

It is unfortunate that IRS staff wrote the language in this manner.  I understand why they do it that way.  It makes the documents easy to edit in future years when the law reverts back.  You just strike the sentences that you inserted to deal with 2021 and 2022 and you're done.  

But didn't Congress allocate money specifically to deal with the 400% "cliff" through 2025?  If so, then even the current IRS guidance isn't up to date on this matter.  And knowledge of that having been signed into law would further underscore that those of us at 400%+ only have to spend 8.5% on health insurance premiums.

[pdxtony]

@Polkadot1  - I agree that the *result* of the error is that you'd end up not getting the credit you should if your income is over that 400%, but the reason is not because that portion of the form is using old rules - in fact from my view that part is working.  Specifically 8962 line 7 show the "figure" of 0.085 - which is correct.  The problems is that Line 11A and 11B is not transferring from the 1095A form, but 11C is.  What this does is indicate that you got a premium tax credit, but there is no 2nd lowest cost silver plan amount to subtract against the premium credit - which would be shown on line 24 and 26.  In my mind TT didn't go back to some old rules/form from years past, this is just a logic error on the form - a bug.  

With all this trust is diminished for me - do I need to know all the rules and check every form, every calculation?

[Tm40plus]

I'm tweeting with Turbo Tax and provided them examples of my 2021 Form 8962 and my 2022 Form 8962 that is not checking box 10 [no] and populating lines 12 through 24 at their request.  I'm thinking there is a disconnect between customer service and programming.  As i mentioned the same thing happened last year with this form and by February when i filed it was corrected.

[Critter-3]

On a different note ... IMHO  I am shocked that the ACA Marketplace is still in exhistance after they gutted the Obamacare program.   Once they dropped the employer requirement  mandate (never was implemented)  and removed the individual penalties for not having insurance the anticipated funding for this program went away thus it is being sustained thru other tax funding (like stealing/borrowing from SS/medicare).  Now with no repayment required for 2 tax years and a more favorable "affordability" standard in the future this entire program is drowning in red ink.  Something has to give or change in the future.  

[paloechel]

How Is Critter-3’s answer the 1 best answer?  It doesn’t even address the broken Form 8962 which is the whole point of this thread.  This forum is broken too!

[Tommy EV]

There is no "disconnect".  Both Customer Service and Programming are on the same page, albeit the wrong page.

[JMac05]

Here's a screenshot of TurboTax's response to a case I opened for this 8962 issue on 1/16/2023. They concluded (incorrectly!) that the > 400% income level causes me to owe back 100% of the advance premium tax credit. But then they provide a link to the IRS website and even highlighted the paragraph that states that this > 400% income cap is NOT in effect for 2021 and 2022.... completely in contrast to their conclusion. It's one thing to be needing a software fix; but it doesn't give me much confidence when they are just completely wrong about their conclusion and they close the case!

[Critter-3]

I have once again notified the forum moderator on this thread. 

[utah withholding id]

From TaxBook

If house-hold  income  is  higher  than  400%,  the  taxpayer  pays  no  more  than 8.5% of his or her household income for the cost of health insurance after receiving the PTC.

This is for TY21 and TY22.  TY23 goes up 50% payback.

[zacknauth]

Dead wrong:

If your household income is 400 percent or more of the federal poverty line for your family size, you will have to repay all of your excess advance credit payments for that tax year. See this page directly from the IRS for additional information: https://bit.ly/3Hax9Fa
Please let me know if you have any further questions or concerns,
-Benjamin”

[Critter-3]

@zacknauth 

READ it again with a fine tooth comb ... see the words  "OTHER THAN" ... 

2021 and 2022 Premium Tax Credit Eligibility. For tax years 2021 and 2022, the American Rescue Plan of 2021 (ARPA) temporarily expanded eligibility for the premium tax credit by eliminating the rule that a taxpayer is not allowed a premium tax credit if his or her households income is above 400% of the Federal Poverty Line.

To be eligible for the premium tax credit, your household income must be at least 100 percent and, for years other than 2021 and 2022, no more than 400 percent of the federal poverty line for your family size, although there are two exceptions for individuals with household income below 100 percent of the applicable federal poverty line. Remember that simply meeting the income requirements does not mean you're eligible for the premium tax credit. You must also meet the other eligibility criteria.

For information about the two exceptions for individuals with household income below 100 percent of the federal poverty line, see the instructions to Form 8962.

Here are some things to remember about how your household income affects your premium tax credit:

• The amount of the premium tax credit is based on a sliding scale, with generally greater credit amounts available to those with lower household incomes. 
• If the advance credit payments made on your behalf are more than the allowed premium tax credit, you will have to repay some or all the excess for any tax year other than 2020. If your household income is 400 percent or more of the federal poverty line for your family size, you will have to repay all of your excess advance credit payments for that tax year.
• If your projected household income is close to the 400 percent upper limit, be sure to carefully consider the amount of advance credit payments you choose to have paid on your behalf. 
• For tax years other than 2021 and 2022, if your household income on your tax return is more than 400 percent of the federal poverty line for your family size, you are not allowed a premium tax credit and will have to repay all of the advance credit payments made on behalf of you and your tax family members.