The IRS is requesting I use lines 12-23 on FORM 8962 instead of line 11, but I'm not seeing that option in Turbotax. How can I choose that option in the program?

[christianandkath]

From the IRS letter: "You entered your enrollment premiums, applicable second lowest cost silver plan (SLCSP) premium, and advance payment of PTC amounts as an annual calculation on line 11 of form 8962, Premium Tax Credit. However, you should have used the monthly calculation chart on lines 12 to 23 to compute your total premium tax credit because . . . Information reported to us from Health Insurance Marketplace shows your enrollment premiums, applicable SLCSP premium, and/or advance payment of PTC amount vary for one or more months. "

[Lisa995]

Did you enter your 1095A and let the program fill in the 8962? Or did you fill out the 8962 yourself manually?

[christianandkath]

I entered my1095A and let the program fill in the 8962.

[Lisa995]

I feel like Ive seen this type of letter mentioned before, Im not sure what triggers it though.

@TaxGuyBill   you're the ACA guru....is this due to the rounding of the figures and the ending annual total ends up being incorrect?

[TaxGuyBill]

@christianandkath   Look at your 1095-A carefully.  Are all 12 months the same in all three columns?

[christianandkath]

The amounts are all correct, but the column C changes because the Amount of Monthly Advance changes.

[scape]

Yes, this is my exact problem too. Where's an option to have TT list the monthly amounts instead of the annual totals?

[TaxGuyBill · Accepted solution]

On your 1095-A, if column A is the same for all 12 months and column B is the same for all 12 months, filling out Line 11 of Form 8962 is correct, and filling out Lines 12-23 is wrong.

The fact the IRS letter includes "and/or advance payment of PTC amount vary" is against what the Instructions say.

If the column A is the same for all 12 months and column B is the same for all 12 months, I would respond to the IRS notice by printing out the instructions, highlight the pertinent information on pages 12 and 13, and include a copy of your 1095-A.
https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=12

I would highlight the following on pages 12 and 13 of the Instructions for Form 8962:

Check the “Yes” box and continue to line 11 if all of the following apply for each qualified health plan you or a member of your tax family was enrolled in for 2018. Otherwise, check the “No” box and continue to lines 12–23.

•You were enrolled in the qualified health plan for all 12 months during 2018.

•Your enrollment premium was the same for every month of 2018. Your enrollment premium is reported in Part III, column A, lines 21 through 32, of Form 1095-A.

•Your SLCSP premium is the same for every month of 2018. Your SLCSP premium is reported in Part III, column B, lines 21 through 32, of Form 1095-A. But see Missing or incorrect SLCSP premium on Form 1095-A next.

and

Line 11—Annual Totals

Note. If you checked the “Yes” box on line 10 and you are completing line 11, do not complete lines 12 through 23. Once you complete line 11, skip to line 24

[Marie 918273]

Sometimes the 1095-A provided is incorrect for column (b) Annual applicable ALCSP premium.  If you don't elect to take the monthly advance payment of the PTC, they will erroneously say that the monthly applicable SLCSP premium is zero.  Turbo tax even has an area that breaks out to answer "what if my SLCSPs are zero" where it asks you to research through the Healthcare.gov tax credit tool and manually overwrite the zero amounts when inputting into Turbo Tax (https://www.healthcare.gov/tax-tool/#/).  Guidance is also included on the IRS website here: https://www.irs.gov/affordable-care-act/individuals-and-families/health-insurance-marketplace-statem...

" The applicable SLCSP premium on your Form 1095-A also may be incorrect if you did not request advance payments of the premium tax credit. If one of these situations applies to you, you must determine the correct premium for the applicable SLCSP for the months affected. See Pub. 974, Premium Tax Credit PDF, for information on determining the correct premium for the applicable SLCSP or, if you enrolled through the federal Marketplace, visit https://www.healthcare.gov/tax-tool/."

Thus there is a scenario where the 1095-A document will vary across the first three columns, but will be the same when inputted into TurboTax and filed, triggering the response from the IRS for reason #3 stated in the original post.  Due to this known error TurboTax needs to include the option to manually override and produce an 8962 that includes breakout amounts for lines 12-23 should the IRS follow up and ask for it. 

[Vromans11]

IRS rejected our amended return because we didn't fill in form 8962 correctly. This is because Turbotax didn't allow the option to fill in lines 12-23. We trusted TurboTax was doing it correctly. WE LOST OUT ON the premium tax credit. And it's too late to amend again because it's been over 3 years and the IRS sat on our amended return for over a year and a half! This didn't give us enough time to amend a 2nd time. Thanks for NOTHING TurboTax!

[NCperson]

@Vromans11 just to be clear, you can still amend 2021-2023 tax years to claim refunds.