Override needed on Form 8962

[Minnow58]

Here is my predicament:

Divorced taxpayer has a pre-teen son, who lives with her and is properly taken as a dependent on the 1040.  Taxpayer gets her insurance through the Exchange, and received a Form 1095-A listing only herself as a covered individual.  Son is covered elsewhere for insurance.

Because of an increase in pay and extra hours worked, taxpayer needs to repay the Premium Credit given to her.  On line 1 of Form 8962, ProSeries lists the family size as "2", even though only 1 individual is covered through the Exchange.  Because of this, the Repayment amount is listed as $3,000, instead of the $1,500 repayment limit.  (Taxpayer is below 401% of poverty level.)

I called the IRS about this and they agreed that the repayment amount should be $1,500 instead of $3,000, since only one household member is on the Exchange.  (Yes, I was VERY surprised to reach a person at the IRS on the phone, and that they were able to give a complete answer!!)

What do I need to do to get Form 8962 to calculate the penalty for only one individual and not 2??

Thanks for your assistance

Michael Gilligan

[Just-Lisa-Now-]

The family size is how many people are listed on the tax return, not how many people are covered.  

[Terry53029]

When you filled out the 1095A did you list only the tax payer as covered?

[Minnow58]

How do I get the program to calculate the Repayment Credit on only the one individual covered under the plan?  It is currently calculating the Credit at $3,000 (for 2 people) instead of $1,500 for one person.

[Minnow58]

Yes.  There is no mention of the son on the 1095-A .

[Just-Lisa-Now-]

@TaxGuyBill  can probably help here the most.  

[TaxGuyBill]

The Family Size is two.  That is the number of people on the tax return.  In most cases, that INCREASES the credit and/or REDUCES the repayment.

That has nothing to do with the repayment limit.  The repayment limit is based on Filing Status.  If the taxpayer is filing as "Single", the limit is $1500.  If it is anything else (for example, Head of Household), the limit is $3000.