Does anyone know how sch A line 2b medical deduct arising from the 1095A is calculated from the numbers on the 1095A?

[oldsheldon]

trying to use logic to come up with number proseries is coming  up with but cannot do so.

[dkh]

While you are on line 2b select the yellow question mark on tool bar to open Tax Help..... read through the explanation of the line 2b calculation

[oldsheldon]

dkh thank you.

i went thru 3 proseries tech support and could not get answer. thank you. old sheldon

[Just-Lisa-Now-]

If theyre self employed, PS gets a little weird with their calculations of marketplace insurance.  I get the pop up message all the time when I reopened these returns that "things have changed" but nothing has changed, its still just struggling with the calculations.

@TaxGuyBill  may be able to shed some light if you cant get it figured out.

[dkh]

You're welcome old sheldon.

[TaxGuyBill]

As Lisa mentioned, is this taxpayer self employed?

ProSeries uses the Iterative Calculation for calculating the Self Employed Health Insurance deduction and the Premium Tax Credit.  Unfortunately, that calculation often does not work out cleanly.  When that happens, there is an 'extra' amount that ProSeries doesn't know what to do with, so it puts it on Schedule A.  When that happens to me, I 'nudge' things a little bit by tinkering with some numbers on the spot on Schedule C for the owner's health insurance, until it gets to a more reasonable result.

Also, that last I checked ProSeries also handles the calculation in certain situations incorrectly, which sometimes adds to the problem.

[BobKamman]

If I **bleep**. 

I started out saying "If I b i l l e d my clients for the work I put in on a situation like this last night, they couldn't afford me."  Then I explained the situation.  But I'm done with answering questions when my work gets deleted.

I kept making manual corrections, as you say, adjusting the amount shown on the Schedule C entry line.  But whenever the AGI changed, the premium tax credit would change, and I would have to rinse and repeat. 

I'm not sure this is something that software should be expected to deal with.  But I wish this discussion had been posted last week. 

[rbynaker]

Bob,

Often a SEP-IRA can be your best friend in these circular messes.  It's not unusual for a $3K SEP-IRA contribution to save $8K in PTC/payback.  Then you get to ask your client the easy question:  "Do you want to give the IRS $8K or would you rather give your future self $3K?"

[BobKamman]

@rbynaker  It doesn't have to be a SEP.  I tried IRA's but $14K saved only $3K, state and federal.

What I didn't get is that at one point, their AGI was 401% of poverty level.  I thought 4X was a lead bullet that killed the deal.