1095-A interplay with SEHI deduction

[TxLaine]

When Form 1095-A is linked to a Schedule C for all 12 months, and there is an excess APTC repayment on Schedule 2, ProSeries is routing part of the premiums to Schedule 1, Line 17 as an adjustment to income, and a small portion to Schedule A, whereas I would think the net of what they actually paid during the year + the excess repayment should entirely go to Schedule 1.

Why would any be routed to Schedule A? There is plenty of Schedule C income; it's not an income limitation.

Anyone else having this issue?

[rbynaker]

This is what PS does when it can't solve the circular calculation for SEHI/PTC.

Are you close to 400% of FPL?

You might play around with IRA/SEP-IRA contributions to see if you can get a better result (there are some fringe cases where putting x into an IRA will save more than x in taxes because of the PTC.

[TxLaine]

Okay, thanks. I'll check on that.

I've just been unlinking the 1095-A, and basically doing it manually, working through the circular calculation myself by toggling between the SE-health entry and repayment and adjustment until it sorts itself out/all matches up...

[qbteachmt]

"whereas I would think the net of what they actually paid during the year + the excess repayment should entirely go to Schedule 1."

Up to the business income, though. Not unlimited. The rest is Medical on Schedule A.

[TxLaine]

Right, yes. This is happening on returns where the Schedule C income exceeds the deduction by plenty, though.