TY2021 Self-employed health insurance does not include "Excess advance premium tax credit repayment"

[Kachow]

Tax year 2021 in Lacerte - I have a Schedule C client with sufficient income to allow for the full self-employed health insurance deduction on Schedule 1, line 17.  They received excess advance payment of PTC and that amount has been added to "Schedule 2 - Additional Taxes, Part 1 line 2 - Excess advance premium tax credit repayment".  However, the repayment amount is not being added to Schedule 1, line 17 - Self-employed health insurance deduction.  Instead it is posting to Schedule A as a medical expense.  The form Schedule C for this business is selected on the adjustments screen (24) and it is also selected on the Premium Tax Credit screen (39) under the SE Health Insurance section.

I have completed the worksheets in Publication 974 and have confirmed that the repayment should be included in the self-employed health insurance deduction on Schedule 1, line 17.  

The worksheet that shows the calculations for SE Health Ins and Premium Tax Credit Reconciliation is not adding in the premium tax credit that is being repaid on Line 5.  That amount is zero.

Is anyone else running into this problem?  

[MrsYeager6]

I too am having this problem, has anyone offered a solution?

[Kachow]

No solution offered.  Once you try to override you are forced to take the alternate iterative calculation method approach.

[Toni CPA]

Were you ever able to get this resolved? We are having the same problem. And not sure I want to override the numbers.

[Kachow]

I am not aware of any solution provided other than working with the override process which is the alternate iterative calculation method approach.

In all my years with Lacerte, I was surprised this wasn't a corrected calculation.  I also don't prefer to override, but Lacerte's outcome wasn't right.

[pat]

I am resurrecting this problem for the 2022 tax filing season. I cannot figure out a way to properly enter the information for the From 8962 and include the excess PTC repayment amount as SE Health Insurance Premiums eligible for the deduction. If I override the amount of excess PTC repaid the Form 8962 fails to generate for filing and the amounts that flow to the 1040 are incorrect. Has anyone figured out a solution for entering this information and getting it to report correctly for e-filing for 2022?

[ChauDuong FL]

Ladies & Gentlemen,

Since the software does not allow us to include the APC repayment as additional health insurance paid, even though the law says we can, I decided to just add the repayment amount as additional premium paid, not reported elsewhere. You may have to tweak it a little because an additional deduction may reduce the APC repayment, but you will get there. No need to go through overrides et al..

[evietax]

I have been complaining about this for years.  What I do is subtract the amount of premium repayment from health insurance line on sched A and add it as additional insurance in SE health insurance paid.

[jamieRandH]

Spoke with a Lacerte support agent today 8/15/24 and there still appears to be no resolution to this issue. Its really surprising that this has gone so long without a fix.