TurboTax 2022 form 8962 Premium Tax Credit

[zacknauth]

@Debra_S 

1050242

[pdxtony]

The customer support rep asked for my file last night and I told him I wasn't comfortable with it, and really the issue is easy to recreate - simply enter a 1095a form and enough income such that you're more than 400% of the poverty level(1099, W2, I doubt it matters).  Then you'll notice that form 8962 doesn't populate line 11 properly from the 1095a form that you entered.  I don't see how having a file is needed or would help.

[paloechel]

@Debra_S

Duplicate - sorry!

[paloechel]

@Debra_S 

I gave my token number to the rep that I talked to for 2 hours on Saturday.  No response.  Why would you need all these people to send you their token numbers - it's a universal error in the program that affects everyone who has 401% on line 5.  Requires a universal fix.

[Polkadot1]

@pdxtony @Debra_S Agree with you 100% pdxtony.  Ugh.  This is not a scenario unique to any individual TT user!  There are many of us in the 401% PTC error boat, asking for a simple coding fix where Line 11 (or lines 12-23) of Form 8962 pulls in Column A and Column B values from the corresponding lines on Form 1095-A.   This is what the program should do for ANY RETURN where Line 5 of Form 8962 shows 401% of federal poverty level.  The rest of the cells on Form 8962 should then work as already programmed.  I don't think its any more difficult than that.  Or that I can explain the issue any simpler.

Given the level of concern that has been expressed in this thread, correcting Form 8962 should be high priority for the next software update for TurboTax Desktop with one State / Windows (for my version, if that matters).  Asking people to share their draft tax files is ridiculous, when the issue has been so clearly explained.

And right now, tonight, 8962 should be marked as FORM NOT FINAL if this will not be corrected in the next software update.   (I'm not shouting, TT prints them in all caps on the form).    Also the form status on the website should be edited right away.

...really the issue is easy to recreate - simply enter a 1095a form and enough income such that you're more than 400% of the poverty level(1099, W2, I doubt it matters).  Then you'll notice that form 8962 doesn't populate line 11 properly from the 1095a form that you entered.  I don't see how having a file is needed or would help."

[michaelgoodwin4533]

I have encountered the same thing. 

Part 1 of Form 8962 does show my household income at 401% however in row 7, 8a, and 8b there is a monthly contribution amount which is consistent with the IRS website which states that the American Rescue Act of 2021 extended the temporarily expanded the coverage to those with income above 400% for 2021 and 2022 (subsequently extended in 2022 to 2025). 

In Part II however none of the totals from my 1095-A are carried forward to this form except for column F. Since column E is not calculated no amount is carried forward to line 24 and currently TurboTax is calculating that I need to repay all of the subsidy which is significantly off from what the 2021 TurboTax shows.

Can someone check form 8962 to make sure the totals from Form 1095-A are carrying forward. 

I have been opening TurboTax every few days to get the latest updates and see if the calculation has changed. As of today, no change. Today I created a new (transferred) tax return to see use the interview for from 1095-A which was not available when I first bought TurboTax. I get the same result either way.

[pdxtony]

I just ended a long conversation with a customer support manager.  He started the conversation with he did an investigation TT has looked into this issue and TT is functioning as expected.  We went back and forth a bit but I focused on 8962 line 11 is not transferring from the 1095a if your income is over the 400%.  The IRS instructions say clearly that those columns are transferred over and there is NO stipulation about income - they are just transferred.  You can see this clearly on the form itself and the instructions solidify this.  I would recommend everyone just focus on this in their interactions with TT.  There seems to be a tendency to focus on the repayment, etc.  Really the problem is that line 11 isn't being populated with the 1095a values and subsequent calculations are impacted because these values that are missing are calculated as zeros.  I may have convinced the manager I talked to, I did submit my file, he said he would "send it up" but he didn't have any confidence that anything would happen. 

[kmgm]

Excellent write-up of the issue.  I am giving them until I have everything needed to file our returns, which is not until the middle of February.  If I have everything else, even though I've used TT forever (and I mean forever!), I will move to another service.  This is a many thousand dollar issue that they are not doing properly. 

This is my last post in this chain as well.  I am just happy to know I am not alone with the issue.  Thank you to everyone for trying to get through to TT!

[david9821]

Last year I think I had the same problem and they asked me the same thing "to send them a file". It seemed really unnecessary and they fixed the problem a few days later - I didn't send the file. I am hoping now that the long weekend is past, they will get this handled. I was wondering if the poverty levels were updated, I didn't check, That's the kind of thing that changes yearly that I guess could cause a delay.

[BenCButler]

Hi @utah withholding id ,   You posted this yesterday and I was hoping you (or someone) could elaborate on the  "2023 Tax Year going up 50% in payback."   This worries me as my income is really irregular and unpredictable, and I often have to pay back some or a lot of the PTC.   Many thanks! 

"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. "

[bwelliottfl2]

I agree with you as I'm seeing the same issue on my end. The 8962 is incorrect as of Jan. 18.

[michaelgoodwin4533]

The IRS Taxpayer Advocate Service has a 2021 and 2022 PTC Eligibility calculator at

https://www.taxpayeradvocate.irs.gov/estimator/ptc/estimator.htm#:~:text=2021%20and%202022%20PTC%20E....

I entered my AGI from Turbo Tax and the IRS calculator shows I should owe around $3,000 since my AGI ended up being higher than the estimate I used at the beginning of the year when I signed up for my ACA plan.

Turbo Tax is currently showing I owe the total $13,000 plus I received in ACA subsidy. I have also been using TurboTax since the 1990's and will wait if necessary until sometime in the middle of March for this to be fixed. If not I will definitely look to alternatives since I am not paying an additional $10,000 in taxes for 2022 which I am positive from all that I have read, and re-read, that I I should not owe.  

[Bahia]

Last nights update corrected the problem with the amounts not transferring.  All is well!

[fordpatrickd24]

I would agree.  After the refreshing Turbo Tax on 1/19/2023, the numbers from columns A & B on Form 1095-A  are  now carried over to Form 8962.

[JMac05]

@Bahia are you using TurboTax Desktop or Online? I'm using Online and mine hasn't updated to reflect the 1095-A information flowing to the 8962 yet.