Form 8962 for Tax Year 2021

[DAHTax]

Form 8962 for Tax Year 2021 has errors.  The first error is Line 4 shows $12,760.  This is the poverty level for 2020 not 2021.  2021 is $12,880.  I called Tech Support about this.  They said that I was the first one that called and they won't send it to the developers until many people complain about it!  Unbelievable!  The amount is wrong, why should it take 100 preparers telling them?  She also said that since from 8962 was insignificant for 2020, the developers did not give it much attention for 2021.  Again, unbelievable!  How are we supposed to prepare proper returns if ProSeries considers certain forms to be of no significance?

Secondly, when right clicking on Line 28 and clicking on Government Instructions, the instructions are for 2020!  not 2021!  

Thirdly,  Line 28 does not populate correctly.  The payback rate is 8.5 percent when  400%+ of povertly level and there is NO repayment limitation.  However, Line 28 enters a repayment limitation of $1,350 (Single) and $2,700 (MFJ) when that line should be blank.  This is directly from the IRS pub on Form 8962.  

I called tech support and after THREE hours of debating the matter with her on the phone, she said she would send the issue to the appropriate department to be handled.

BEWARE using this form until updates are made!

[singh]

Instead of waisting time with such an ignorant rep. from support I would have asked her to refer me to her manager or to another rep. May be I would have hung up the phone and called again hoping to get someone knowledgeable.

[Just-Lisa-Now-]

I saw some other people report a weird rejection for the 8962, it said an update would be available on 2/3 to fix it....maybe this is all part of the same issue.

[TaxGuyBill · Accepted solution]

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@DAHTax wrote:

The first error is Line 4 shows $12,760.  This is the poverty level for 2020 not 2021.  2021 is $12,880.  I called Tech Support about this. 

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The program is correct to use that amount.  The Premium Tax Credit is based on prior year Federal Poverty Level.  If you read the Instructions for 8962, you will see the $12,760 is correct.

[DAHTax]

Thank you for your reply!!

Well, yep just checked the IRS pub:

Line 4
Check the box to indicate your state of residence in 2021. Enter
on line 4 the amount from Table 1-1, 1-2, or 1-3 that represents
the federal poverty line for your state of residence for the family
size you entered on line 1 of Form 8962. (For 2021, the 2020
federal poverty lines are used for this purpose and are shown
below.)

I thought I remembered this from years past. But thought I remembered incorreclty.  But it is in the Pub.  But let's think this through Form 8962 is based on the previous year's level (2020) and the subsidy applied for in 2021 is based on 2022 expected income.  It doesn't seem to make sense to use prior year levels.  

Nevertheless, it is what it is.

[haffcpa]

I also have an issue with proseries Form 8962 - It is not populating line 27 in part III.  It should subtract line 24 form line 25 and enter it there and my guy has no repayment limitation so that difference should be on line 29 and schedule 2.  None of that is happening.  Taxpayer is over 400% poverty level and need to pay back some subsidy to get them to 8.5% of AGI for total paid for insurance.  I guess I need to call????

[Just-Lisa-Now-]

Did they collect unemployment in 2021?

[qbteachmt]

@haffcpa 

asked here but also starter a new topic:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/tax-year-form-8962/01/1...

It's the same audience. No need to post twice.