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How to correct Form 8962 and Self Employment Health Insurance Deduction Error

HaveagoodDay
Level 1

I completed a self employed client's return who received a 1095-A.  Had the American Rescue Plan not passed the client would have owed excess premium tax credit.  I received no errors and waited to hear back from the client on another issue.  Went to do another review and now I get this error -  "Form 8962: Premium Tax Credit Liab - The recently enacted American Rescue Plan suspended the requirement to payback excess Premium Tax Credit.  The product is still being updated to exclude the repayment from the Self Employed Health Care Calculation."  I realize that Form 8962 does not need to be filed with return but because there is a self employed health insurance calculation, is it ok to plug the self employed health insurance number in and delete the 1095-A information so that Form 8962 does not generate?

Thank you in advance for any guidance.

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8 Replies 8
Ernie
Level 9

Depends - do you want to do it right?

TaxGuyBill
Level 14

I think I would try un-linking the 1095-A/8962 from the Schedule C, then enter the proper amount on the spot for it on the Schedule C worksheet.

Ernie
Level 9

Bill:

I don't think that is correct.  Part of that money will not be eligible for self employed health insurance.

I would wait for the worksheet.

Dusty Ernie

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TaxGuyBill
Level 14

I said to enter the  "proper" amount, which is the 'net' amount paid.

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Ernie
Level 9

I understand but most people don't know how to calculate that amount.  As you know it can be a circular calculation. 

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TaxGuyBill
Level 14

In most cases the circular calculation would not matter in this regard.  If the 8962 shows a PTC repayment with linking it to Schedule C (the circular calculation) and if there is still a repayment when un-linking it and entering in the spot on Schedule C, the result will be the same 'net' amount paid.

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kfccpa
Level 3

This worked for me as I only accounted for the amounts actually paid (including dental, etc.) on the related LTC worksheet so correct amount being reported on Schedule 1, no repayment showing up on Schedule 2 and error messages cleared.

Taxes-by-Rocky
Level 4

Unlinking, computing the net, and forcing to Schedule C is very close (off by $9 which I suspect somehow has to do with 92.35%).  And I was all set to rip the schedules right out of the program!!

We'll see what happens by 11:55pm on May 17th.

Thanks for the overview.  Helpful!!

 

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