Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Feb 21, 2022 12:13:17 PM

TT 2021 Schedule 1 Line 17 - Error Calculating Self-Employed Health Insurance Deduction?

I am preparing a return on Turbo Tax 2021 CD desktop:  Although the Form 8962 Line 28 repayment limitation seems to now be fixed, there still seems to be a related problem with the Self-Employed Health Insurance Deduction on Schedule 1 Line 17.  The TT calculation is acting as though the repayment of the Excess Advance Payment of the Premium Tax Credit is still limited to $1350 (single) even though Form 8962 Line 28 repayment limitation has been removed.  (Form 8962 Line 5 is 401%)  I have checked that this is not a problem in getting the optimal value via the Iterative Calculation Method. The Self-Employed Health Insurance Deduction is being calculated as the amount already paid for health premiums plus a repayment of $1350.  This results in a much lower value because the actual full Excess Advance Premium Tax Credit Repayment (Form 8962 Line 29) is much more than $1350 in my case.  The repayment limitation problem was discussed in the January 20, 2022 post; "TT 2021 Form 8962 - Error calculating repayment limitation?"

0 3 741
3 Replies
Level 3
Feb 28, 2022 7:05:44 PM

I encountered the same, first with the PTC repayment limitation bug reported in January (now fixed), and now with the remaining self-employed health insurance calculation error.

 

I found a workaround by unchecking the "I'm self-employed" box in the 1095 section, then manually entering my full premium (monthly payments + repayment obligation) in the self employment expenses section. Hope this helps on your CD version as well. It does make one question using this product if you have to double-check all the calculations AND discover your own workarounds.

Level 3
Mar 28, 2022 5:42:53 PM

I am having the sae issue. I used the Pub 974 iterative calculation to determin the correct deduction since this is a circular calcultion. I have an agent at turbotax looking at my file. Like you, I wonder why I buy this program if I have to check everythind and create workarounds.

Level 3
Mar 29, 2022 10:16:30 AM

Turbotax response seems to be do your own research, do the calculation manually and use workarounds to get Turbotax to report the correct answer. I suspect the issue is that TT does not realize that if tor AGI is > 400% then you are not limited if your associate business income is greater than the deduction. See IRS PUB 974 page 57-75 for details,

 

Next year I will probally try a different software package. Any recommendations? You just can't trust TT.