Lacerte automatically reduces the deduction (schedule A or adjustment, as appropriate) for medical insurance by the amount of federal premium tax credit as calculated on federal Form 8962.

However, Lacerte is not reducing the insurance deduction for the amount of California subsidy received as calculated on Form 3849. Shouldn't it be?

Am I missing a checkbox somewhere, or is this a program error?

(This particular client is between 401 and 500% of poverty level and has to pay back all the federal subsidy but is then receiving a very large additional California subsidy. Lacerte is not reducing the premiums at all.)