51250

[#1]

The following diagnostic is generating:

The iterative calculation method from IRS publication 974 was used to calculate the Premium Tax Credit with the return falling under the scenario for Step 2 labeled, "Cannot take PTC". In this situation, the SE health insurance premiums are calculated using the Self-Employed Health Insurance Deduction Worksheet and carried to Schedule 1. The Premium Tax Credit is disallowed on Form 8962 and the Modified Adjusted Gross Income on Form 8962, line 2a is pulled from Step 2 of the iterative calculation. Using the Modified Adjusted Gross Income from this step allows Form 8962 to determine if any excess advance premium tax credit repayment is needed without allowing a premium tax credit. The return must be filed on paper in this situation. (ref.#51250)

Solution:

There is no override to this diagnostic if triggered and the return will reject if e-file error checking is disabled. This will return will need to be paper filed.

[kathyh997]

This taxpayer received no Advanced credit.  He paid higher than the low cost plan.  

[turtlecpa]

I also had a return with no credit for the self-employed taxpayer.  I went in and removed the link between the ACA and s/e income, manually entered the premiums on page 24, then had to put that same number as an insurance reimbursement under medical expenses to not have a duplicate deduction for the premiums on Schedule A.  Was able to e-file the return after that.  After all these years with the ACA, you'd think they would have fixed this calculation issue by now.