This is my second year on an ACA policy, but the first year where I might be able to itemize my deductions. I'm able to reconcile everything that TT is doing (TT desktop on Windows) other than the Medical Expenses Worksheet. I'm reasonably sure that it's user error, but I just cannot find a way to make the numbers add up, so would be grateful for any assistance. From my 2022 1095-A Annual Totals:Column A: $8,713.32Column B: $10,567.20Column C: $4,935.00From my 2022 Form 8962 Annual Totals:Column (a): $8,713Column (b): $10,567Column (c): $5,034Column (d): $5,533Column (e): $5,533Column (f): $4,935Line 24 - Total Premium Tax Credit: $5,533Line 25 - Advance Payment of PTC: $4,935Line 26 - Net Premium Tax Credit: $598Medical Expenses WorksheetLine 2b: $3,179Total annual premiums actually paid: $3,946 In my first pass at the questions, I included the $3,946, since I didn't know that TT was doing some behind-the-scenes calculations. That gave me a total health insurances premium number that was far too high. However, if I don't include it, it seems to me that the number that TT has calculated for Line 2b in the Medical Expenses Worksheet is too low. I can't make sense of these numbers. Help, please? Thank you.

A

Anonymous

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Medical Expenses Worksheet Question (Line 2b)

Forum|Forum|3 years ago
February 13, 2023
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This is my second year on an ACA policy, but the first year where I might be able to itemize my deductions. I'm able to reconcile everything that TT is doing (TT desktop on Windows) other than the Medical Expenses Worksheet. I'm reasonably sure that it's user error, but I just cannot find a way to make the numbers add up, so would be grateful for any assistance.

From my 2022 1095-A Annual Totals:

Column A: $8,713.32
Column B: $10,567.20
Column C: $4,935.00

From my 2022 Form 8962 Annual Totals:

Column (a): $8,713
Column (b): $10,567
Column (c): $5,034
Column (d): $5,533
Column (e): $5,533
Column (f): $4,935
Line 24 - Total Premium Tax Credit: $5,533
Line 25 - Advance Payment of PTC: $4,935
Line 26 - Net Premium Tax Credit: $598

Medical Expenses Worksheet

Line 2b: $3,179

Total annual premiums actually paid: $3,946

In my first pass at the questions, I included the $3,946, since I didn't know that TT was doing some behind-the-scenes calculations. That gave me a total health insurances premium number that was far too high. However, if I don't include it, it seems to me that the number that TT has calculated for Line 2b in the Medical Expenses Worksheet is too low.

I can't make sense of these numbers. Help, please? Thank you.

Best answer by

I figured it out, although there is still a $1 discrepancy. I can live with that.

There were three issues, one an accounting error on my part, the second an extra credit card fee that the insurance company was charging me for paying my bill by credit card (a fee that I cannot include in my premium paid), and the third a premium tax credit.

I reported in my initial post that my total annual premium paid was $3,946. I made a mistake in one of the monthly premiums that I was tracking. My premium assistance was reduced in April, 2022, due to the updated AGI from my tax return. I had mistakenly moved that reduction to March, 2022, meaning that my figure for March was incorrect, over by $133. Adjusting that reduced my annual premium paid to $3,813.

The second issue was a monthly $2.92 credit fee, an annual total of $35.04. Removing that left me with an annual actual premium paid of $3,778.

Finally, when calculating the premium tax credit, the figure was $598.00, essentially a refund of premiums paid. I can't include that in my annual actual premium paid figure, so removing that leaves me with an annual actual premium paid of $3,180, rounded to the nearest dollar.

The figure that TT used in the Medical Expenses Worksheet was $3,179, a difference of $1. I don't know where that $1 came from, but I'm okay with not knowing that. I think (I hope) I finally understand how this works.

T

tmunoz

TurboTax will indeed include information from your Form 1095-A form into your Medical Deductions information. Do not enter your premiums again in the deduction section.

The total of your Premium Tax Credit will be subtracted out of the total cost of the policy. Your actual payments of $3,946 are credited with the additional Premium Tax Credit that is applied on your return, since your estimated Advanced Premium Tax Credit was low.

A

Anonymous

Answer

I figured it out, although there is still a $1 discrepancy. I can live with that.

There were three issues, one an accounting error on my part, the second an extra credit card fee that the insurance company was charging me for paying my bill by credit card (a fee that I cannot include in my premium paid), and the third a premium tax credit.

I reported in my initial post that my total annual premium paid was $3,946. I made a mistake in one of the monthly premiums that I was tracking. My premium assistance was reduced in April, 2022, due to the updated AGI from my tax return. I had mistakenly moved that reduction to March, 2022, meaning that my figure for March was incorrect, over by $133. Adjusting that reduced my annual premium paid to $3,813.

The second issue was a monthly $2.92 credit fee, an annual total of $35.04. Removing that left me with an annual actual premium paid of $3,778.

Finally, when calculating the premium tax credit, the figure was $598.00, essentially a refund of premiums paid. I can't include that in my annual actual premium paid figure, so removing that leaves me with an annual actual premium paid of $3,180, rounded to the nearest dollar.

The figure that TT used in the Medical Expenses Worksheet was $3,179, a difference of $1. I don't know where that $1 came from, but I'm okay with not knowing that. I think (I hope) I finally understand how this works.

B

BlizzMan

Employee

I think I figured out where your $1 discrepancy might be from. TurboTax rounds up (or down) EACH month from your 1095-A entries to arrive at the figures it plops into form 8962. This rounding caused my calculations and TurboTax's calculations to be different by $5 when I was peering into the math of the Medical Expenses Worksheet and the value TT generated for that line 2b value. In your case, I'm guessing, but it could be that the rounding by TT creates a $1 difference for you if your method of calculating involved no rounding and used actuals from your 1095-A.

M

Movie-Nut

You are correct, I was able to do the same math

M

Movie-Nut

I have a similar issue but different. On my form 8962 line 29 excess advance PTC repayment I have an amount of $950. This amount is added into my tax owed on Form 1040.

My question: IS this excess repayment of $950 added to my actual personal payments of $3795 to arrive at a Line 2b of $4745 on the Medical Worksheet???

TT does not show this actual calculation anywhere.