As far as I'm aware: Maximum expected contribution to health insurance is 8.5% of income. My self-employment MAGI is $266k This means my expected contribution is $22.6k The benchmark SLCSP is $14,850 * As I understand it, the PTC is Benchmark − Expected Contribution * This means that I should have zero in my PTC. Instead I have $11,280 * Am I missing something, or is freetaxusa calculating the premium tax credit incorrectly?

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Premium Tax Credit calculating incorrectly?

DaveIsMe

As far as I'm aware:
Maximum expected contribution to health insurance is 8.5% of income.

My self-employment MAGI is $266k

This means my expected contribution is $22.6k

The benchmark SLCSP is $14,850

As I understand it, the PTC is Benchmark − Expected Contribution

This means that I should have zero in my PTC. Instead I have $11,280

Am I missing something, or is freetaxusa calculating the premium tax credit incorrectly?

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DaveIsMe

Well, I figured out the very weird issue.

When I entered the SLCSP premium on a previous page, I'd somehow (no idea how) flubbed the annual number to be something like $1.4 million. Crazy that FTUSA doesn't flag that as a bad number (need some error correcting folks). Anyway, that comma was the clue, since it literally was a comma. The field just truncated the display because no one expected the amount I typed in.

Once I corrected SLCSP, everything works.

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DaveIsMe

This is where I think things go sideways. In form 8962 (Premium Tax Credit calculations):
Line 11. field B says "annual SLCSP premium".

It should be: $14,850. FTUSA has: 1,484,96 (weirdly, yes, a comma by the decimal)

Line 11. field d says "annual maximum assistance, subtract c from b. If zero or less, should be zero"

It should be: $0. Instead, it's 1,462,35.

Seems like line 11, field b and field d are calculating incorrectly.

DaveIsMe

Well, I figured out the very weird issue.

Once I corrected SLCSP, everything works.

TaxMorgan

Hello DaveIsMe,

I'm glad you were able to find the error, and everything recalculated correctly. Since we don't have access to the information from your account here in the community, we can't comment on why you did not see the software alert you to the error.