ATX and the ACA penalty on 1040

[Super Mom]

ok, my ATX has an easy little form for showing the flat penalty that carries over. HOWEVER, I'm reading that the penalty is 1% of income over threshold OR flat amount---this particular tp would benefit from 1% because not much over the filing threshold for her status---I can figure the penalty and do an override on that line for the penalty, but I really don't like overrides, for many reasons that can cause problems. So, my question is, does any ATX users know of an ATX form or worksheet that figures the 1% and not just flat. Thanks!

[mastertaxguy]

shared responsibility payment

1. TTB 3-23, left column, bottom, shows that the penalty you describe is the GREATER of $95.00 or 1% of the excess household income over the threshold amount.
2. It would appear the software you use is correctly computing the "penalty" or SRP.

[unzuetay]

Or

Hi as I understand from https://www.healthcare.gov/fees-exem...being-covered/
the penalty is 1% OR $95 whichever is HIGHER. so I'm thinking that's why it's not figuring the 1% because it would be less than $95.
Hope this helps

[Black Bart]

ATX and the ACA penalty on 1040

ok, my ATX has an easy little form for showing the flat penalty that carries over. HOWEVER, I'm reading that the penalty is 1% of income over threshold OR flat amount---this particular tp would benefit from 1% because not much over the filing threshold for her status---I can figure the penalty and do an override on that line for the penalty, but I really don't like overrides, for many reasons that can cause problems. So, my question is, does any ATX users know of an ATX form or worksheet that figures the 1% and not just flat. Thanks!

I'm using ATX but aren't quite sure what form (if any) you're working off of. The ATX program figures the penalty for having no insurance on the back of form 8965. It may be kind of an odd place for it to be since the form is entitled "Health Care Exemptions," but anyway, add that form to your return, look on the line at the bottom of the screen and you'll see a box: "shared responsibility pmt" (payment). Click that and it'll pop up a worksheet which figures the greater of BOTH the minimum $95 and the 1%. All you have to do is manually plug in the "household income" on line 7 and then from line 10 on down it'll pick out the larger figure and automatically post it to the back of the 1040 for you. I generally check the "No" (exemption boxes) in Part II on the front of the 8965 - otherwise you'll have a blank form which shows no figures at all. It's a good idea to print out the worksheet for your records (the 8965 prints out with all the other forms when you run the copies but I have no idea if the worksheet actually goes in electronically to IRS along with the 8965.

Sorry if that's confusing. The stuff is a mess, isn't it?

[Super Mom]

Thanks everyone, this was very helpful!!