Turbo Tax computing wrong ACA subsidies.

[Anita]

I live in Florida. My MAGI for my spouse and I is $28,822. TT is claiming I am only allowed $15,951 per year in subsidies but the Healthcare calculator computes I am allowed $19,956 per year.

Since my insurance premiums were $17, 592 per year, this means TT is computing I owe the IRS about $1600 which is an error.
How do I correct this mistake? Just ditch TT? Pat for TT and then print out returns, correct myself and then mail in taxes?

Thanks

 

[PaunchyPirate]

Where in the tax forms do you think the error is that you would correct? Does your 1095-A form from the ACA exchange have correct data in it? Where on Form 8962 do you find an error?

 

[PaunchyPirate]

Also, based on what you wrote in your original post, you are comparing apples and oranges.

TT says you should get $15951 in subsidies.
You paid $17592 in premiums. That does not tell how much your subsidies actually were.

 

[scrabbler1]

From my years of completing Form 8962, the purpose of entering your premiums paid (Line 11a) is to act as a ceiling on the amount of the ACA subsidy. Otherwise, your ACA subsidy is mainly based on your income (MAGI) and the Second Lowest Cost Silver Plan (SLCSP) shown on Lines 2 and 11b, respectively. Yes, your family size and where you live play a role, too, as they connect to your MAGI. But, from year to year, it's your MAGI and SLCSP which vary the most and play the biggest role in determining your ACA subsidy.

 

[Anita]

Also, based on what you wrote in your original post, you are comparing apples and oranges.

TT says you should get $15951 in subsidies.
You paid $17592 in premiums. That does not tell how much your subsidies actually were.

My entire point is TurboTax Tax has computed my subsidies wrong at $15951. That's the problem.
Healthcare.gov confirmed my subsidies were at above $19k. The ACA marketplace advisor then tells you which plans you can pick that will be under the approved subsidies so my insurance will be paid for and I will not have to pay back aything. Also...any ACA calculator tells you your subsidies based on your income, State, age, etc.. KBB is the one many use.
Anyway, I know my subsidy amount is correct. It should be around $19,500 (the exact number is in my OP). This is not debatable so please dont get side tracked making me validate what has already been proven. I dont want the thread to take that turn. Since my subsidy is above $19k and my plan cost about $17,600, I should not have to pay back the IRS any amount.
My only question to you guys is TurboTax for some reason computes my subsidy amount at around $15,900. This is wrong. No doubt. I conformed it with my ACA marketplace counselor. I need to know how to correct this within TT. I have no idea why TT computed a low number? It doesn't allow me to see until I pay and efile or print forms.

 

[cathy63]

If you are using the desktop version of TurboTax, you can press Ctrl+2 to go to Forms mode and look at the exact numbers it's putting on form 8962. The calcs are very straightforward and haven't changed.

Before ditching the software, check to see if you have made a typo when entering a number from the 1095-A, or if TTax is calculating a different MAGI than you expected because it's adding some income you've forgotten about, like non-taxable social security, tax-exempt interest, or excluded foreign income.

 

[Midpack]

If you are using the desktop version of TurboTax, you can press Ctrl+2 to go to Forms mode and look at the exact numbers it's putting on form 8962. The calcs are very straightforward and haven't changed.

Before ditching the software, check to see if you have made a typo when entering a number from the 1095-A, or if TTax is calculating a different MAGI than you expected because it's adding some income you've forgotten about, like non-taxable social security, tax-exempt interest, or excluded foreign income.

That's what I do when I have a question, look at forms. More often than not I can easily see what's happening, and TurboTax usually highlights the line/box that's in question. FWIW my current copy of TurboTax says "Do Not File" with red exclamations ! all over it, so it's not final - in my case they haven't finalized form 2210, 1116 or state, but I am confident they will be right when TurboTax removes their "Do Not File" reminders.

 

[PaunchyPirate]

The OP appears to be using the online version of TurboTax if they are entering data and have not yet paid. I am not familiar with the online version, so I will refrain from further suggestions on how to figure this out. I use the version I download and install on my PC, which seems to work just fine in calculating my ACA subsidy amount.

Edited to add: I did a quick check online and it seems that the online versions of TurboTax do not have a "Forms Mode". You need to view/print the return in order to see the results of your work. And it appears you must first pay for TurboTax before you can do this. OP, I don't think anyone here can help you with what might be wrong in TurboTax until you are able to see your ACA-related forms and figure out what is wrong. It might be mis-entered data, it might be a bug, who knows. The way to figure it out is to go thru the forms line-by-line and see what is happening.

 

[RobbieB]

Your subsidy is more than your premium? The government is paying you to get insurance?

 

[RunningBum]

I would either switch to H&R Block to see what they get or get the desktop version of Turbo Tax so you can see the forms as you go. All you see on the 1040 is the $1600 bottom line so you don't know what the error is. You are inferring the TT is telling you that your subsidy is $15951 but you don't know that. The error might be elsewhere in form 8962 or somewhere else. Although MAGI usually equals AGI, perhaps in your case it doesn't, or TT thinks it doesn't. MAGI is another number you don't see unless you look at 8962.

 

[RunningBum]

Your subsidy is more than your premium? The government is paying you to get insurance?

Of course not. It won't go lower than $0. If your allowed subsidy is more than your premium it's worth looking for a better (more expensive) plan that makes full use of the subsidy, but sometimes there isn't one that has the desired doctors, is HSA eligible, or something else.

 

[11522914]

I just did my taxes using H&R Block Deluxe and my subsidy was calculated correctly. This is the first year I used the ACA.

Amazon has it on sale right now for $22.50, which is a great price. Might be worth it to give it a shot.

 

[Born2Fish]

Is the problem with TurboTax or is there an error on the 1095-A?

We can't see your Form 1095-A. The relevant information is in Form 1095-A, Part III.

Column A is the monthly enrollment premium. Mine is $1848.83

Column B is the Monthly "second lowest cost silver plan (SLCSP) premium". Mine is $2807.38.

Column C is the monthly advance payment of premium credit. Mine is $1848.83. So, my premium is Less Than SCLSP. So I owe nothing.

TurboTax calculated my subsidy correctly.

What values does your 1095-A have?

 

[Anita]

Is the problem with TurboTax or is there an error on the 1095-A?

We can't see your Form 1095-A. The relevant information is in Form 1095-A, Part III.

Column A is the monthly enrollment premium. Mine is $1848.83

Column B is the Monthly "second lowest cost silver plan (SLCSP) premium". Mine is $2807.38.

Column C is the monthly advance payment of premium credit. Mine is $1848.83. So, my premium is Less Than SCLSP. So I owe nothing.

TurboTax calculated my subsidy correctly.

What values does your 1095-A have?

My premium is like yours...less than SCLSP.
My 1095a is as follows:
Column A: $1466
Column B: $1601
Column C: $1466

Thanks

 

[RunningBum]

The 1095-A is based on your estimated MAGI. Form 8962 looks at your actual MAGI, tells you based on the SLCSP was your actual allowed subsidy is, and compares that to the monthly advance you received based on your estimates. If your actual MAGI was more than you estimated, you would owe more, unless it was within your unused subsidy amount. If it was less you would get more back unless you were already fully subsidized. So 1095-A itself does not tell you the story unless your MAGI estimate turned out perfect.

I also note that the difference between columns B and C is 135, times 12 is $1620. You said the error was "about $1600". Did you happen to reverse the two columns when you entered the 1095-A data?

 

[finnski1]

The 1095-A is based on your estimated MAGI. Form 8962 looks at your actual MAGI, tells you based on the SLCSP was your actual allowed subsidy is, and compares that to the monthly advance you received based on your estimates. If your actual MAGI was more than you estimated, you would owe more, unless it was within your unused subsidy amount. If it was less you would get more back unless you were already fully subsidized. So 1095-A itself does not tell you the story unless your MAGI estimate turned out perfect.

I also note that the difference between columns B and C is 135, times 12 is $1620. You said the error was "about $1600". Did you happen to reverse the two columns when you entered the 1095-A data?

Yes I noticed that too. was going to mention it.

 

[teejayevans]

I just did my taxes using H&R Block Deluxe and my subsidy was calculated correctly. This is the first year I used the ACA.

Amazon has it on sale right now for $22.50, which is a great price. Might be worth it to give it a shot.

Does the ctrl-2 trick mention above work on HR too?

 

[Anita]

The 1095-A is based on your estimated MAGI. Form 8962 looks at your actual MAGI, tells you based on the SLCSP was your actual allowed subsidy is, and compares that to the monthly advance you received based on your estimates. If your actual MAGI was more than you estimated, you would owe more, unless it was within your unused subsidy amount. If it was less you would get more back unless you were already fully subsidized. So 1095-A itself does not tell you the story unless your MAGI estimate turned out perfect.

I also note that the difference between columns B and C is 135, times 12 is $1620. You said the error was "about $1600". Did you happen to reverse the two columns when you entered the 1095-A data?

Yes....and my AGI was less. My estimated AGI was $36000.
As I mentioned...every calculator tells me with my AGI...my subsidy is $1595 but my premium was only $1466. I shouldn't have to pay back anything.
I will double check to make sure I didn't put the numbers in wrong. But let me ask...since my column A and C are the same....and less than B, why does TT say I owe money? I thought Columns A,B and C are used to calculate if you owe it not? If that is true then anyone here should be able to look at these three columns and tell me if I owe or not...right?

 

[RunningBum]

Yes....and my AGI was less. My estimated AGI was $36000.
As I mentioned...every calculator tells me with my AGI...my subsidy is $1595 but my premium was only $1466. I shouldn't have to pay back anything.
I will double check to make sure I didn't put the numbers in wrong. But let me ask...since my column A and C are the same....and less than B, why does TT say I owe money? I thought Columns A,B and C are used to calculate if you owe it not? If that is true then anyone here should be able to look at these three columns and tell me if I owe or not...right?

I don't know. That's why everyone is telling you that you have to see the 8962 form, otherwise we are all guessing. There's no sense in continuing to make guesses.

And no, as I explained earlier, form 1095-A by itself does NOT tell you whether you owe. Re-read what I wrote. I took care in trying to write it correctly, and it doesn't seem like you even read it.

However, if your MAGI was even less than estimated, then you should not owe more. But again, we are all guessing why TT says you do. But many people use TT without problems in their subsidy calculations, so it's unlikely they made such a blatant error.

 

[Anita]

I don't know. That's why everyone is telling you that you have to see the 8962 form, otherwise we are all guessing. There's no sense in continuing to make guesses.

And no, as I explained earlier, form 1095-A by itself does NOT tell you whether you owe. Re-read what I wrote. I took care in trying to write it correctly, and it doesn't seem like you even read it.

However, if your MAGI was even less than estimated, then you should not owe more. But again, we are all guessing why TT says you do. But many people use TT without problems in their subsidy calculations, so it's unlikely they made such a blatant error.

WTH dude...of course I read it. But as I have been saying...TT dies not let me view their 8962. That's why you guys have got to answer with some assumption that I'm telling the truth. Here is a screenshot of TT saying my subsidy is only $1590. I can't get deeper than that.

 

[RunningBum]

I give up.

 

[Anita]

Here is also a screenshot of the ACA calculators telling me I receive $1595 in subsidies.
So I've listed my 1095 columns ABC, my AGI, etc...I don't know owe what else I need to post to help you guys help me. Maybe I am simply confused but I''ve listed everything pertinent to compute my subsidy accurately.

 

[Anita]

And finally, here is a screenshot of a scratch 8962 that I did real quick proving that TT has it wrong and that my subsidies are $17594 which is exactly what my premiums are. Does this help?

 

[PaunchyPirate]

Anita, I don’t think any of this will help anyone understand what TurboTax is doing behind the scenes. You will need to either pay for TurboTax so you can download and review the forms in line-by-line detail or you can try another tax software.

 

[RetiredAndLovingIt]

I'm not sure that running the Healthcare calculator now will give you correct numbers, it didn't when I tried a couple of months ago.
You need to look at the original subsidy approval letter that they would have sent you late in 2020 for 2021. It will list the income that they had approved you for and also the subsidy amount at that time keeping in mind that midway through the year everything changed due to the ARP and the subsidy amount would have increased and your monthly payment would have dropped.
I would guess that either you made more than you originally estimated or you're plugging in the wrong numbers from the 1095.
I under estimated my income and had to pay some back due to my error.