Back SS with obamma care

[TAX4US]

I have not run into this one before. TP is Schedule C with health care through obamma care and the 1095 a. TP also received back owed SS jacking the ss way up. Question is do I figure the ss benefits first without the heal care or do you figure HC first with all the ss in one year. Due to the fact TP income in back year is less could allow for less SS being taxed. I do not know which way to start this mess. Thanks guys for helping me figure this one out.

[Gretel]

Pia

This scenario is the biggest PIA I can image. I had one like this (Schedule C and Premium Tax Credit) and it took me hours to work understand and work my way through the IRS worksheets. Sorry, there is no easy answer to this.

I know you asked about taxable SS benefits, so you might not have SE income - filing Schedule C does not automatically mean having SE income.

[Rapid Robert]

This scenario is the biggest PIA I can image. I had one like this (Schedule C and Premium Tax Credit) and it took me hours to work understand and work my way through the IRS worksheets. Sorry, there is no easy answer to this..

There is nothing complicated or PIA about this at all.

To Tacks4US - your question is a little muddled, when you say "figure HC [health care]". What do you mean by that? If you are asking about the PTC, note that the excess of total social security benefits over the taxable portion is added back to the MAGI for PTC, so it doesn't matter what election you make or don't make with the lump sum SS benefits, it all goes into MAGI.

[kathyc2]

I have not run into this one before. TP is Schedule C with health care through obamma care and the 1095 a. TP also received back owed SS jacking the ss way up. Question is do I figure the ss benefits first without the heal care or do you figure HC first with all the ss in one year. Due to the fact TP income in back year is less could allow for less SS being taxed. I do not know which way to start this mess. Thanks guys for helping me figure this one out.

The PTC is calculated on gross SS benefits, not taxable. It's going to be a circular calculation, but your software should handle it.

[Gretel]

The PTC is calculated on gross SS benefits, not taxable. It's going to be a circular calculation, but your software should handle it.

So, I obviously have the wrong tax software provider...but that is good to know!

[kathyc2]

So, I obviously have the wrong tax software provider...but that is good to know!

Which software do you use?

[FEDUKE404]

Software fault

So, I obviously have the wrong tax software provider...but that is good to know!

Any professional, and most personal, tax software should handle this situation.

Care to share what professional tax software you DO have ??

FE

[Gretel]

Any professional, and most personal, tax software should handle this situation.

Care to share what professional tax software you DO have ??

FE

Sure, it's Proseries. By now it probably will turn out that I just didn't find it in the program...

[kathyc2]

Sure, it's Proseries. By now it probably will turn out that I just didn't find it in the program...

I find Pro handles it quite well. Toward the bottom of the 1095A worksheet double click to link it to a Sch C. Don't enter ACA premiums paid on the Sch C worksheet, only on the 1095A.

[Gretel]

I find Pro handles it quite well. Toward the bottom of the 1095A worksheet double click to link it to a Sch C. Don't enter ACA premiums paid on the Sch C worksheet, only on the 1095A.

Thank you, thank you!