I prepared 1040 with 1095A and 8962 for tax year 2020 in March 2021 before the law UI exclusion $10200. At the time taxpayer's AGI is above thredshold poverty level line $12000 or $12400) and taxpayer could get premium tax credit $9119. The fact was prior year, taxpayer had high income and pay premium health insurance $892/month without Fed and state subsidy. Tp got refund for that already
After the law enacted to exclude UI $10200, the professional proseries software auto changed to exclude $10200 and tp's AGI is below thredshold poverty level line (go to medicaid). The software is thinking tp could not get Fed and state health subsidy and not calculate credit for tax payer
I believe that it is proseries error
For the next year, 2021 how we can we override this ?
Thanks to advise
Per health premium 2020
Form 8962 line 12-23
Column A taxpayer paid out health premium after subsidy $829 Column B Silver lowest cost Premium $1366 and column C and D will calculate if tp has modified AGI above threshold. And not calculate if below threshold . Then when they report income 2020 (Covid 2020 happened and business loss)
Before adjust UI exclusion, Modified AGI is above threshold , tp received $9119 (the whole thing of health premium pay out)
After adjust UI exclusion , modified AGi is below threshold , per proseries, refund is $0. That would hurt case
IRS automatically adjust for the UI and send additional refund $469 for UI exclusion?
You are not the only victim of unintended consequences, and I have read that congress is looking into the problem. Maybe they will come up with solution, and we can amend to solve problem. The program is correct for now, and is not an error on ProSeries part.