Does anyone have a worksheet to reconcile this line for premium tax credits? I'm trying to slog through this: http://www.irs.gov/pub/irs-drop/rp-14-41.pdf and not getting far.
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The amount should be the amount of premiums paid less any additional credit or plus repayment of advance credits.
What this doesn't take into account is that the Jan premium was likely paid in Dec. Timing differences that I have decided not to track, but in theory you could. -
Which one gets calculated first the Premium tax credit or Line 29?Comment
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I don't really think there is a first as a change in one will effect the other. I suppose you could set up an excel sheet but it would be pretty complex. I don't think there is any way to have a paper/pencil/calculator worksheet to calculate it.Comment
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I use ProSeries and I need to "link" the 1095A to the schedule C for it to calculate correctly. My guess is other software has something similar.Comment
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I would HOPE that your software will do it.
I made a spreadsheet months ago that was ONLY a trial to see how it works, so I CAN'T GUARANTEE IT IS TOTALLY ACCURATE, but you can test it out if you want.
Directions: Fill in the 3 yellow boxes. The first BIG green box with numbers in it has the answer. If there is nothing in any of the BIG green boxes, the "iterative calculation" is over $1, so the blue boxes show the "alternative calculation", or you can use "another method that produces amounts that satisfy applicable tax law" (see small green boxes for the iterative numbers bouncing back and forth).
If you are interested, I have some other possibly helpful ACA things on my webpage too:
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I saw this posted on another forum...
There's a circular calculation in the current tax year. Calculate the SEHI without PTC. Then use the PTC to reduce the amount spent on SEHI and claim that. That increases the AGI which means a lower PTC. Now take the lower PTC and use that to refigure the SEHI. This results in a lower AGI which means higher PTC. Rinse, repeat until the change is <$1.
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Drake
Does anyone know if Drake is calculating it correctly? When I do the manual calculations, I get something different than DRAKE for the SEHI deduction on line 29 and I don't see a worksheet from Drake showing how the SEHI was calculated. DRAKE's worksheet for calculating the SEHI line 1 is what I disagree with and I don't see where that line 1 was calculated.
I will contend, that my manual calculations might be wrong. OR maybe I am entering the wrong information into the DRAKE fields.
My self-employed client is on the edge of the 200 and 300% of the poverty line, and when I calculate the SEHI using the $1,500 pay back (tax), it throws the client into the $2,500 pay back (tax) and just the opposite when I start with the $2,500 pay back (tax).
So, I'm not sure what to do.Comment
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Using 8962 the following should double check the software calculations:
Subtracting column F from column A should equal the amount client paid for POLICY year. Bear in mind that they likely paid Jan 14 premium in Dec 13 and paid Jan 15 premium in Dec 14. Make any adjustment to the amount they gave you as paid as CALENDAR year payments to account for this.
Take this number and subtract any additional credits (line 26) or add repayment (line 29).
This should be the SEHI deduction.
Alternate calculation:
Column C is the amount taxpayer should have paid IF they selected SLCSP.
Subtract column A (plan selected) from B (SLCSP).
If the result is positive subtract this from C to get SEHI deduction.
If result is negative add it to C to get SEHI deduction.
Both ways to calculate should produce the same result.Comment
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I didn't state it in earlier post, but obviously this line 29 calculation is coming only for ACA policy. You will still need to make adjustments for LTC insurance, spouse Medicare, etc.
I'm wondering if the reason some people are having problems is that they are imputing the ACA premiums like they would have for HI last year rather than starting with the 1095A and having the numbers flow in from that.Comment
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