Skip to main content
April 10, 2021
Question

TurboTax Home and Business miscalculating health insurance deduction for self-employed

  • April 10, 2021
  • 2 replies
  • 0 views

I am self-employed and purchase my health insurance on the exchange. When I enter the information from 1095-A on 8962 it calculates I have to repay $2700 due to excessive PTC. TurboTax was updated to waive that repayment due to the recent tax code changes for this year. However, it still adds that penalty to what I paid out of pocket and reports that amount as an adjustment to income on Schedule 1. How can this be right? Means sense of the penalty was applied and paid but it wasn't.

 

I cannot figure out how to override this. When I go into Health LTC Worksheets this figure is auto-calculate and the following statement appears:

"A self-employed health insurance adjustment of $4941.00 from premiums paid through an

exchange is included as an adjustment to income but does not appear on these worksheets."

In this case, the 4941 includes the 2700 repayment and is transfer to Schedule 1.

 

How do I fix this?

2 replies

Critter-3
April 10, 2021

News flash ... the 8962 repayment has been waived for the tax year of 2020. The form 8962 is being ignored completely.  

noname87Author
April 10, 2021

As I posted, I understand that. However, TurboTax is treating the non-existent repayment as a adjustment to my income. So I am getting a $2700 deduction for the repayment that has been waive. Does not make sense?

 

So TurboTax is still using the 8962 to calculate the self-employment healthcare deduction.

noname87Author
May 8, 2021

It looks like they fixed the issue when I updated the program today.