Premium Tax Credit - Pub. 974 and Iterative Method (US - Ref #43498)
2023 tax year. Dollars AND cents to perform calculation. Where is the input for dollars AND cents? Is ProConnect for 2023 tax returns capable of performing the iterative method? The software currently reverts to simplified method when unable to produce a result with the iterative calculation method (because software is not using both dollars AND cents), which may be disadvantageous to the TP.
Credits > Premium Tax Credit (1095-A, 8962) > Form 1095-A - Health Insurance Marketplace Statement > Coverage Information (Part III)
ProConnect rounds all numbers entered in this table. Pub 974 requires dollars and cents for these figures to perform the iterative method in determining PTC in conjunction with self-employed health care insurance deduction.(1)
ProConnect diagnostic reports "This return ran through the IRS Publication 974 Iterative Calculation Method for the Self-employed Health Insurance Deduction/Premium Tax Credit and failed to converge on a valid result. The program used the Simplified Calculation Method instead. US - Ref #43498"
Is possible to force software to produce iterative calculation method worksheets and the 8962s used in the iterative calculation method?(2)
Help with this is appreciated!
(1) 2023 Pub 974, p52, § ITERATIVE CALCULATION METHOD (bottom left) "Do not round to whole dollars when performing the computations under this method. Instead, use dollars and cents. This is necessary so you can complete Step 6"
(2) These are not the same as the 8962 produced as part of the return, as these have the preparer adjust AGI in the worksheet based on a different SE health care deduction and other adjustments (i.e. dependents, non-taxable interest) depending on circumstances (thus called the iterative method).
