This is the message that shows up in HR Block Software after the most recent (March 26) update.
This message shows up EVEN IF the taxpayer is NOT entitled to ANY tax credit. In my case, because of unanticipated non-earned income during 2014 (a capital gain from sale of assets) my income is too high to qualify for the tax credit, and I will have to pay the full clawback amount.
Users of H&R Block report receiving this message when attempting to prepare their return after the latest update:
“Since you’re claiming the ACA premium tax credit and the self-employed health insurance deduction, your return requires additional calculations that aren’t part of the program. To file an accurate return, we recommend you complete your return with an H&R Block Tax professional.
You must fix this problem before filing.”
At this point the best option for self-employed taxpayers who are or may be entitled to claim a premium tax credit for exchange-purchased insurance appears to be TurboTax, which appears to calculate amounts correctly.
TaxAct software seems to also be able to handle the correct calculations, so may be an acceptable alternative to H&R Block.
The IRS Publication 954- Premium Tax Credit — is finally available. Information about calculating the self employment health insurance deduction, including worksheets, can be found on pages 21-37. This includes detailed instructions for complex situations, so it is worthwhile to read. The worksheets can also be used to double check results from tax software.
I will be taking some time to review this document and plan to summarize important points in forthcoming posts.