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.

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Esteemed Pioneer
Posts: 10
Registered: ‎03-27-2015

Software not doing iterative calculation properly - self employed with ACA premium subsidy

[ Edited ]

I am using H&R Block Premium 2016.  I am self employed and also get an ACA premium subsidy for health insurance purchased through the Marketplace. This year I underestimated my income so I am due a premium credit but I also want to take the self employed health insurance deduction (line 29 form 1040).  When I go through the software interview and enter the total health insurance premiums paid (my out of pocket + subsidy) , it puts an enromous figure on line 29 of form 1040 (more than double what I paid out of pocket).  When I put just the out of pocket premiums that I actually paid, it puts that exact amount on line 29 without reducing it to take into account the amount of ACA credit that I am due.  I don't think the software is doing the iterative calculation properly and H&R Block needs to have their software engineers check it out. Thanks.

Tax Pro
Posts: 5,780
Registered: ‎02-23-2016

Re: Software not doing iterative calculation properly - self employed with ACA premium subsidy

Hi ghnc15,

 

Welcome to the community.

 

You're correct that this isn't calculating properly.  You might consider speaking with an ONLINE CHAT SUPPORT agent to see if they can help you get it to calculate correctly though.  You access online chat support here:

 

ONLINE CHAT SUPPORT

 

Note that you may be asked verification questions that can include information from your tax return and/or your MyBlock account since you will be linking to online chat from outside of your account.

 

Hopefully this helps you out.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Esteemed Pioneer
Posts: 10
Registered: ‎03-27-2015

Re: Software not doing iterative calculation properly - self employed with ACA premium subsidy

Louis-  Thanks for your quick reply.  I have contacted H&R Block Online Chat Support twice about this issue but I don't get the impression that they are taking it seriously.  The support staff want to remotely look at my tax return because they say my data entry is suspect.  One of the support staff wanted me to supply my full name, DOB and SS #.  I declined to give that to them with all of the tax fraud going on in the last couple of years.  Hopefully H&R Block will get this fixed in the next update before I permanently switch to TurboTax.

Pioneer
Posts: 1
Registered: ‎06-23-2014

Re: Software not doing iterative calculation properly - self employed with ACA premium subsidy

You just saved me a boat load of time!  I have the same situation - self-employed and covered by the ACA.  The year before last, when the software failed to make the correct calculations I was sent to a local H&RB agent who was rude and arrogant.  I ended up having to mail in a physical return because the software didn't do the calculations right for my healthcare deduction - even though I paid for e-filing.  No refund, no apologies.  For whatever reason, I went back to the H&R B software for my taxes again last year.  Same problem.  They had not fixed the issue and made it worse because they refused to refund my purchase of the software.  But of course I didn't figure this out until I spent weeks on my taxes.  I ended up going with Tax Act  which cost me hours of time and andanother  fee for software.  I guess the lesson from you is be done with H&R B if you are self-employed and covered by Obamacare.

Esteemed Pioneer
Posts: 10
Registered: ‎03-27-2015

Re: Software not doing iterative calculation properly - self employed with ACA premium subsidy

[ Edited ]

Well I think I just found the solution to this problem.  I went back through the interview for "Your Health Insurance" where I had already entered all of my information from form 1095-A.  I stepped through it slowly again and noticed something that I did not see before.  There was a question at the end of the interview where it asks "Months Self Employed".  I checked the full year and it seems to now be doing the iterative calculation and putting a reasonable figure on line 29 of form 1040.  The figure I used in the interview for the "Self-employed health insurance premiums paid" was subsidy + out of pocket (this may vary for other people in different circumstances).  

 

My apologies to H&R Block if this was my oversight this year but I don't remember seeing the "Months Self Employed" question when I did my original data entry.  

Pioneer
Posts: 2
Registered: ‎02-13-2017

Re: Software not doing iterative calculation properly - self employed with ACA premium subsidy

I am also having trouble getting any results that make sense.  In the interview, how do I determine what number to use when it asks "Self-employed health insurance premiums paid"? 

Pioneer
Posts: 2
Registered: ‎02-13-2017

Re: Software not doing iterative calculation properly - self employed with ACA premium subsidy

The problem has been identified and can be worked around.  The H&R Block software cannot handle two 1095-A forms. 

 

On worksheet W of publication 974, the instructions are: "Enter the APTC from Form 1095-A, Part III, column C, that is attributable to the premiums on line 1". The H&R Block software uses the total from whichever 1095-A is the second one entered. It should use the total of both 1095-A forms.

 

I can override the software to get the correct results, but then I cannot e-file.

Valued Pioneer
Posts: 4
Registered: ‎04-10-2014

Re: Software not doing iterative calculation properly - self employed with ACA premium subsidy

[ Edited ]

Has the problem been "fixed" for 2017 or do I need to make the change to another software? I am new to the subsidy for 2018 and want to keep it simple as possible.

Tax Pro
Posts: 5,780
Registered: ‎02-23-2016

Re: Software not doing iterative calculation properly - self employed with ACA premium subsidy

Hi 252gregb,

 

 

Welcome to the H&R Block community.

 

It is entirely possible that the software will allow you to enter multiple 1095-A forms this year, however I have not heard anything about this one yet at this point.

 

The way around this that most people are unaware of is that as long as you don't have any marketplace insurance policies that overlap (which would result in more than one 1095-A for the same month or period) you can enter the information from all of your 1095-A forms on a single 1095-A form in the software.  The calculation of your contribution amount and the premium tax credit will be the same as if you entered the information on two or three separate Forms 1095-A.  If entering information for columns A, B, and C of more than one 1095-A on the same 1095-A in the software you cannot enter the annual totals by themselves but rather everything must be entered month by month and then totaled.  For example, if you have one 1095-A for January through March, another 1095-A for May & June, and a third 1095-A for August through December, then you can enter the information from them on a single 1095-A form in the software.  This is allowed under the IRS rules as well, but you'll want to be sure and keep a copy of your 1095-A forms so that you can show them if asked by the IRS.

 

If you have any other questions I'll be glad to help.

 

Louis,
Senior Tax Advisor (Tampa, FL)