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8962 form premium tax credit does not calculate right

Hello Tax experts
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
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6 Replies 6
Just-Lisa-Now-
Level 15
Level 15
If your income is too low, you dont qualify for the PTC...another trickle down issue from the UI exclusion.

Did IRS automatically adjust for the UI and send any refund?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Hello Lisa

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?

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Terry53029
Level 12
Level 12

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.

Terry53029
Level 12
Level 12

Want to add, for next year if not too late, have your client receive the PTC in advance by lowering his monthly payment

Hello Terry

Because tp normally have income high in prior years  and must report income (based on prior year return with Covered CA health ) tp must pay high premium cost . 

Thank for support and advise

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Hello Terry

When I filed return and realized that issue , but it was on tax seasoning, then I did not call support team to look at calculation . 

Thanks 

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