RitaB Posted October 13, 2016 Report Posted October 13, 2016 I just want to thank everyone who contributed to this "OH SHIT" thread. Helped me a lot yesterday. 6 Quote
Gail in Virginia Posted October 13, 2016 Report Posted October 13, 2016 I like the meme except he has a paddle. Most of the time I don't feel like I do. 7 Quote
RitaB Posted April 7, 2018 Report Posted April 7, 2018 Once again, this thread saved my life. Love you guys. Kinda hate this client. He had zero business signing up for marketplace insurance. 2 Quote
Abby Normal Posted April 7, 2018 Report Posted April 7, 2018 I hope Tom and Rita got a point for vulgarity in this thread. I'd hate to think I'm the only one with marks on my permanent record. 2 Quote
NECPA in NEBRASKA Posted April 7, 2018 Report Posted April 7, 2018 I have used this thread many times and am so grateful that you guys can understand the instructions. I just can't remember from year to year how to do this stuff. Why is it that so many of our self-employed clients are getting SS and making the calculations even more difficult. I really love when they come in and tell me that I have to make sure that the income is this amount. I tell them, no you had better have made sure that you reported your income to the marketplace. An IRA contribution saved my last one's rear. I just wish that it would all go away. 2 Quote
jklcpa Posted April 7, 2018 Report Posted April 7, 2018 20 minutes ago, Abby Normal said: I hope Tom and Rita got a point for vulgarity in this thread. I'd hate to think I'm the only one with marks on my permanent record. I could eliminate those points and take away your bragging rights if you prefer. 1 2 Quote
Abby Normal Posted April 7, 2018 Report Posted April 7, 2018 Nah. I like the bad boy that Rita's mama warned her about. 1 3 Quote
Lion EA Posted April 8, 2018 Report Posted April 8, 2018 Just completed returns for a young documentary filmmaker with two states, lots of SE income, a couple of W-2s, and lots of APTC. His income was thousands higher than the prior year, most of it NY SE. So, of course, he had to repay ALL his APTC. Luckily, ProSystem does the iterations with SE health insurance deduction and the repayment. But, proofing was a bear. I can't charge this kid enough. (He's already applying for a payment plan.) If I say any more, I'll get a mark, too! 4 Quote
jklcpa Posted April 8, 2018 Report Posted April 8, 2018 33 minutes ago, Lion EA said: If I say any more, I'll get a mark, too! If I said what was on my mind about some of the returns and a couple of clients, I'd rack up so many bad points that I'd probably have to ban myself! 2 3 Quote
RitaB Posted April 9, 2018 Report Posted April 9, 2018 On 4/7/2018 at 3:09 PM, Abby Normal said: I hope Tom and Rita got a point for vulgarity in this thread. It's not vulgarity if it's in the ACA Forum. 3 3 Quote
Gail in Virginia Posted April 9, 2018 Report Posted April 9, 2018 10 hours ago, RitaB said: It's not vulgarity if it's in the ACA Forum. Or maybe everything in the ACA forum should automatically be considered a vulgarity unless it is off-topic. 1 3 Quote
Abby Normal Posted April 9, 2018 Report Posted April 9, 2018 We should have a swearing forum where we can just cut loose, with a warning before you answer.... or just do what Rita and I do and swear in private messages. 3 Quote
mwrightea Posted April 30, 2018 Report Posted April 30, 2018 On 2/6/2015 at 2:56 PM, BulldogTom said: B. Jani, I will try to explain what I did, and try to interpret the rules as best I can, but as you can see from my expletive in the post name, I don't know it all. The difference between the two methods as I understand it is very minor. The alternative method is the same as the iterative method, but you just stop after the first calculation. In order to get the right answer, the entire front page of the return less the SE HI deduction and the 8962 must be complete. You can play with the schedule A after the fact, but nothing that affects AGI. Next, take the amount of out of pocket expense that the taxpayer paid out of pocket (Premium minus advanced credit from the 1095A), plus the amount of the max payback ($1250 or $2500 depending on filing status). Enter this on the front of the 1040 as the SE HI deduction. Then go to the 8962. The software will have the MAGI calculated for you unless there is a family member whose income you are adding to get to family AGI. In my case, this was a single TP, so it did not apply. Once you have MAGI calculated, enter the information from the 1095A into the 8962. At the bottom of the form, it will give you the amount the TP is required to repay. If the amount is $1250 or $2500, you are done. If the amount is less than those amounts, go back and add the out of pocket cost plus the amount just calculated on the 8962 to the SE HI Deduction on the front of the 1040. This will change your MAGI on the 8962 (it will make the repayment amount higher, because the SE HI is less, bringing down MAGI). ***STOP HERE if you are using the Alternative Calculation*** If you are using the iterative method, continue on. Go back and keep changing the SE HI deduction amount (which will be a little larger every time because of the increased repayment amount) until the amount of the repayment does not change more than $1 on the 8962. I hope this is helpful to you. Let me know if you have any questions. Tom Newark, CA What happens if the clients payback amount added to SEHI is more than the $2550.00 in my case as follow: MFJ No Dependents Total income $82932. SE Income $73045.00 Deductible SE $5161.00 1095-A Part III A. 17634.48 B. 17662.56 C. 11644.52 Pay back on 8962 is 11644.00 But if$11644. 00 added to SEHI then client gets a Credit PTC credit ???? This is making me throwup 1 Quote
Lion EA Posted April 30, 2018 Report Posted April 30, 2018 It's an iterative calculation. You can continue until the difference is no more than $1. Or, you can stop after one (?). Or, you can trust your software, but do confirm by examining the worksheets that are created by the computations. Quote
mwrightea Posted April 30, 2018 Report Posted April 30, 2018 2 minutes ago, Lion EA said: It's an iterative calculation. You can continue until the difference is no more than $1. Or, you can stop after one (?). Or, you can trust your software, but do confirm by examining the worksheets that are created by the computations. I'm using ATX so I have to use the worksheets in Pub 974 and I can't even get close to a $1.00 Quote
Abby Normal Posted April 30, 2018 Report Posted April 30, 2018 I use ATX and just use the worksheets built into it. Can usually get it to $1 but I had one odd one that $5 was the best I could do. Quote
mwrightea Posted April 30, 2018 Report Posted April 30, 2018 Quote Thank You for the help. I appreciate It very much. It just doesn't make sense to me that my client would get to deduct the advanced PTC Credit as SEHI ($11644.) and receive and an additional credit of 192.00 because the worksheets W & X are treating the 17634.48 as SEHI as their payment which brings them to a 375% of poverty level. ARRGH! Quote
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