Hidden worksheet computing SE health insurance premium deduction miscalculating when have Exchange insurance, a small repaymnet of adv PTC, and supplemental vision & dental premiums
ProSeries has a hidden worksheet as the go-between between Form 8962, Part II repayment of excess PTC and Form 7206 SE Health Insurance Deduction. At the bottom of Form 7206 there is a statement "A self-employed health insurance adjustment of $____ from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets."
I want to have access to that hidden worksheet and see that computation because it appears to be wrong!
Here's an example. If Sch C has say $40K net for 12 months activity. Form 1095-A Part II Column A minus Column C is $3,300 premiums paid while Form 8962 shows a repayment of excess advanced PTC of $750. Also the taxpayer paid an additional $320 in premiums for vision & dental. The self-employed health deduction on Schedule 1 line 17 should be $4,370 ($3,300 + $750 + $320).
However, that worksheet is instead reporting a lower amount on Schedule 1 line 17 and throwing the balance on Schedule A medical when there is clearly sufficient Schedule C income and no losses from any other source.
I tested this at length with a Schedule C and self-employed health premiums. If I only have Exchange insurance with repayment of excess adv PTC, it computes correctly. If I only have non-exchange premiums, it computes correctly. But a combination of exchange premiums plus repayment of excess adv PTC plus non-exchange premiums results in an error.
I also would like ProSeries coders to re-visit the computation on that worksheet because it should deduct the entire amount.
