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:
(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?
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.
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....
So does than mean toss Turbo Tax in the dumpster and go see a tax pro ?
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
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.
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?
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."
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.
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
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!
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?
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-software
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.
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.
After doing my own research (no thanks to TT), I believe my scenario is outlined under the Instructions for For 8962 on page 18 under "Allocation Situation 4. Other situations where a policy is shared between two tax families" where the IRS says "Under the rules in this section, you and the other taxpayer may agree on any allocation of the policy amounts between the two of you. You may use the percentage you agreed on for every month for which this allocation rule applies, or you may agree on different percentages for different months. However, you must use the same allocation percentage for all policy amounts (enrollment premiums, applicable SLCSP premiums, and APTC) in a month."
I'm no CPA, but this seems like pretty straightforward direction that would be helpful for TT to at least have referenced somewhere. Since my adult daughter has enough earnings to make her "not a dependent" but not enough to support herself or pay any of the premiums, she is happy to have me claim 100%. Would have saved me several hours.
One final addition. Like the poster above says, even if you are allocating APTC 100% to yourself, TT throws up its hands and says it's too complicated, I can't handle it. So if you're allocating 100% to yourself, just tell TT you didn't share it with another taxpayer. Treat TT like a child and protect it from the reality it is not ready to handle...
Amen, daddude. Amen! I ran into this in the current year for the first time and I can't believe it's been a know issue to TT this long and still isn't fixed. My opinion of Intuit is going down fast!
Agreed! Can't believe this issue has not been resolved!!! So annoyed after using TT for years to have this come up.
Shared policy allocations of a Form 1095-A linked to self-employment income is not supported by TurboTax for the 2023 tax year as per the FAQ - Unsupported Calculations and Situations in the 2023 TurboTax Individual Federal Tax Software Program.
@Anonymous
Yes. We've all figured out TT does not support it, but you missed the point.
Even if you are allocating APTC 100% to yourself, TT throws up its hands and says it's too complicated.
We all believe that this calculation is NOT too complicated (since at 100% and 0%, effectively there is no sharing). We think this scenario, where it is shared with a young adult that is effectively a dependent (even if filing taxes separately) is not as rare as TT seems to believe and should be supported by TT.
Hi @Daddude
I'm in the exact situation you described in your post. I am planning to go the route you mentioned, and "tell TT you didn't share it with another taxpayer". My daughter when she filed her taxes this year had to use our 1095-A info and allocate 0% to herself in order for her e-filing to go through.
Does filing our taxes this way "tell TT you didn't share it with another taxpayer" result in an IRS query/issue post-filing? Would like to avoid any issue with an IRS follow-up 🙂
Thank You!
Hi k9998,
I'm not a tax expert, CPA nor have any financial designations, so am not qualified or able to advise you on your specific situation.
That said, my experience was that I found that specific example documented in the IRS documentation. It says you and the other person can agree on ANY allocation, including all to one and nothing to the other.
In my case, I used that example to allocate 0% to my daughter and 100% to my wife. The trick with TT is that even though you are "sharing" the 1095-A, TT needs to be told that you are NOT sharing your 1095-A (since it was allocated 100% to me). Otherwise, TT says you have to file it yourself on paper.
It's been a while, but believe that even though I told TT I didn't share, I went to forms and filled out the sharing info with 100% to me. My daughter did the same claiming 0%. So I believe the IRS got what it needed. In our case, we were never questioned about it by the IRS. Hope this helps.
Thank you very much for sharing your experience. It is VERY helpful!! I think i'll do the same as what you did, makes total sense. I tried manually over-writing the Form 1095-A with the sharing allocation information (despite telling Turbotax in the Step-by-Step that i am not sharing with anyone else), and it allowed me to save, although it continued to show the 6 errors (i am just going to manually file with the 6 errors since e-filing with erros isn't allowed). I too believe this will provide the IRS what they need (resulting in Form 8962 filled out with the allocation information -100% to myself, 0% for my daughter's tax return).
Appreciate your quick and very helpful response!
Hi @Daddude ,
Just a quick follow up to your response. Did you eventually manage to e-file (you mentioned you went into the forms to do the 100% allocation to yourself)? Or did you have to manually file because you needed the form 8962 (Premium Tax Credit) to show that you were allocating 100% to yourself?
Thank you!