TurboTax 2022 form 8962 Premium Tax Credit

[zacknauth]

nice try changing the subject Critter-3 with your bad take. Obamacare still works great, and provides health insurance at an affordable cost to millions of people.

"On a different note ... IMHO I am shocked that the ACA Marketplace is still in exhistance after they gutted the Obamacare program."

[MD1947]

The Turbotax Community is clearly a diversionary tactic. Enjoy your badges!

[mindiw]

@Polkadot1 Thank you so much for the link!!! You are correct, the Glenn Reeves spreadsheet works flawlessly. I am so relieved to see a logical number in the excess PTC field, I was sweating it!! Now we wait for a fix from TT. I am confident that it will be fixed. The people on this forum can't be the only ones bringing it to their attention. Eventually someone with some brains will figure it out!!! Thanks again!

[JMac05]

@zacknauth Actually, dead right. The IRS link you sent and highlighted in yellow proves my point! "For tax years OTHER THAN 2021 and 2022....."!

[Polkadot1]

@mindiw No problem.  Running my numbers through Reeves' spreadsheet yesterday gave me enough confidence to pay the feds $3,000 in Q4 estimated yesterday, rather than the $8,000 TT was calculating.  So $5k I didn't have to send off to the feds for this stupid PTC issue.

I don't understand the folks on this board that are so defensive about TT needing weeks if not months to program what is essentially a couple of fields that need to be linked from the 1095-A over to the 8962.  It's as if they working for NASA on a moon landing.  LOL.

[eagle5688]

@Critter-3 

As you work for Intuit/TT, you tried to defend TT for product issues and question ACA marketplace instead? That's funny. While you are shocked the ACA Marketplace is still in existence, I am shocked TurboTax could not handle tax code correctly.

The complexity of tax calculation that you described is really irrelevant. Everything you said is already in the code except being turned off when household income is above 400% (shown as 401%). The only fix that is needed is "comment out the checking of 401% or greater than 400%".  Anything beyond that only reveals the inefficiency of the code. 

As I mentioned earlier, it is very understandable the product (or any software products) may have bugs. The frustration came from how TT support responded when the issue got brought up, and yours is unfortunately no better.

Here is the 2nd email I just received from TT Help team an hour ago. I am sure TT support team never read the articles that they asked their clients to read. TT support team is simply a joke.

--------------------------------------------------------------------------------------------------------------------

Hello,

Thanks for letting us know about your issue with your Form 8962. We apologize for any inconvenience this caused. We’ve got a help article that we think will help you with this. For the 2022 tax year, you must repay the difference between the amount of premium tax credit you received and the amount you were eligible for.

https://www.irs.gov/publications/p974#en_US_2021_publink100023121

https://www.irs.gov/affordable-care-act/individuals-and-families/eligibility-for-the-premium-tax-cre...

https://www.healthcare.gov/glossary/advanced-premium-tax-credit/

https://www.healthcare.gov/taxes-reconciling/

https://www.irs.gov/affordable-care-act/individuals-and-families/eligibility-for-the-premium-tax-cre...

https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics#:....

https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premiu...

If this doesn’t do the trick or there’s something else we can help you with, feel free to give us a call.

Thank you,

The TurboTax Help Team

[James Br]

Funny how they continue to say it is working correctly.  When I enter the information in Turbo Tax it says I owe over $21,000.  When I use Tax Act or H&R, they both say I owe $432.  Just a little bit of difference.  I guess TT needs to let everyone else know they are right and everyone else is wrong.

[alsn]

Related thread on bogleheads forum. It appears that OLT.com calculates it correctly as well (in addition to the Excel spreadsheet by Glenn Reeves). Time for TT to step up.
TurboTax 2022 - issue with preliminary modeling and ACA/PTC - Page 2 - Bogleheads.org

[BenCButler]

@James Br @mindiw @Polkadot1 @mctaxpayer and others that have used other software, can you share what FPL is being used?  The documentation for this on the web is all over the place.

EDIT:   Several folks have confirmed that the 2021 FPL level (used in the current 8962 form: $17,420)  is correct for use in  tax year 2022.   Apparently there is a one year lag...

[mindiw]

@BenCButler I believe the lower FPL 2021 number is correct. Someone on this thread mentioned there is a one year lag, since you sign up in 2021.  I looked at the IRS instructions for Form 8962 and they have the lower numbers. See page 7 for the table, page 9 for specific instructions to use .0850 if AGI is 400% or above FPL. I’ve seen the one year lag mentioned on another website too.

https://www.irs.gov/pub/irs-pdf/i8962.pdf

[mindiw]

@BenCButler the Glenn Reeves spreadsheet uses the 2021 lower numbers.

[BenCButler]

Great! Thanks for the quick reply.  That should settle it. I kept seeing differing information.

Thanks again.

[Polkadot1]

@BenCButler Reeves uses $17,420 for FPL in his 2022 spreadsheet.

[zacknauth]

@JMac05 I was saying that the TT rep was "dead wrong" . Sorry for the confusion.

[mctaxpayer]

@Polkadot1  $17,420 is the correct FPL for 2022. Everyone should PLEASE check this link as to the correct amounts and stop thinking it's $18,310 which is the 2023 FPL

https://obamacarefacts.com/federal-poverty-levels-for-aca-coverage/#:~:text=The%20federal%20poverty%....