Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

Reply
Valued Pioneer
Posts: 3
Registered: ‎04-09-2017

8962 form / it isn't showing i qualify for a subsidy - software bug??

 

I have two separate questions regarding healthcare:

 

1) I am employed but my employer did not offer health insurance, so I bought it through the marketplace but did NOT receive a subsidy. However, when I run my tax information through H&R block's online software, even though my AGI is less than the $47,500 income requirements., it still says I received the "Correct subsidy" (which is $0. which can't be correct, because my AGI is less than $47k). I am filing single and have no other income besides my W-2 and a small amount of freelance income. Is this a bug with HR Block software not calculating things correctly????

 

2) Next question: My full time employer did not offer health insurance, so I bought it through the marketplace (no subsidy received) with post-tax money. However, I also freelanced on the side and am claiming some freelance income. So, should I file my health insurance premium costs on the "Self Employment or Business Income (Schedule C)" as "Self-employed health insurance:" ?

Thank you!
Jen

 

Tax Pro
Posts: 5,199
Registered: ‎02-23-2016

Re: 8962 form / it isn't showing i qualify for a subsidy - software bug??

Hi aferlynn,

 

Welcome to the H&R Block community.

 

It's possible that your premium tax credit of $0 is correct because it's based on more than one thing.  However, if you would like I will double-check the calculations by hand for you.  I'll need a line-by-line description of page 1 of your 1040 and your entire 1095-A (click on my name to send them to me in a private message).

 

In order to deduct health insurance premiums for the self-employment deduction the plan would have to be established under your business, so you're not going to be able to do that.  Your premiums are deductible on Schedule A in the medical expenses section.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Valued Pioneer
Posts: 3
Registered: ‎04-09-2017

Re: 8962 form / it isn't showing i qualify for a subsidy - software bug??

Hi Louis --

I sent you a private message with my info. Did you receive it? Thanks!

Highlighted
Valued Pioneer
Posts: 3
Registered: ‎04-09-2017

Re: 8962 form / it isn't showing i qualify for a subsidy - software bug??

[ Edited ]

Okay so I went through and did an 8962 by hand, and it still comes up as zero for PTC. But I don't understand why, as my income is below the $47k line. How is this calculated? Did I just choose a "wrong" plan in the marketplace..?

I don't understand also how the SLCSP factors in. Mine said zero but it said I had to check online for a "correct" one --- ?