"Check Health Insurance Deduction and Credit" warning: self-employed/premium tax credit

everrett

After trying to e-file my 1040 online, I got a notice from FTU saying "The IRS is rejecting your return because they expected your return to have Premium Tax Credit information on Form 8962."

I realized I hand't entered my 1095-A info, which I have now completed. I'm self-employed, with Schedule C.

But now when I go to file return, I get a warning from the FTU site saying:

"Make sure that you don't count the same health insurance premiums for the Self-Employed Health Insurance Deduction and for the Premium Tax Credit.

The IRS allows various methods for figuring out how to allocate insurance premiums between the deduction and credit. One way to allocate the amounts is using the Alternative Calculation."

Can FreeTaxUSA not check this automatically? How can I be sure the deduction isn't being counted more than once?

I've downloaded the preview copies of 8962, Sched C, Sched SE, 7206. If someone can advise on how to check this, or why I'm getting the error, I would appreciate it!

For year in the past I've used Turbotax and the app calculated this without any issues, so I'm hoping FTU can properly do the calculations.

PhillipB

You will need to calculate the correct self-employed health insurance deduction your own. Generally, the deduction is total premiums paid - total premium tax credit received (This will be advanced premium payments received through the year on your Form 1095-A plus any excess advance premiums that have to repaid with your return or minus any additional premium tax credit reported on your return)

Our software may have some limitations in comparison with some of our pricier competitors.

everrett

Thanks for the reply. I've downloaded the filled preview copies from FTU: forms 8962, 7206, Schedules C & SE.

"You will need to calculate the correct self-employed health insurance deduction your own."

Doesn't form 7206, do that? On line 14, there is a filled amount for "self-employed health insurance deduction." (The other forms I cited above are also completed).

It seems to me that this has been calculated, but due to the warning I got (mentioned in OP), I want to be sure I'm not taking the deduction twice.

PhillipB

Form 7206 doesn't automatically account for the Form 1095-A and the Form 8962. Once you have refigured the premiums that qualify for the self-employed health insurance deduction, go back to your business and the health insurance entry screen and enter the recalculated premiums.

everrett

I'll give that a try. I'm leaving town early tomorrow morning for a week, but I've filed for an extension so I can take my time with this. When I get back I'll try what you recommended and hopefully won't have any follow up questions.

Thanks again.