when both the self employment health insurance deduction and the premium tax credit (ptc) are on...

when both the self employment health insurance deduction and the premium tax credit (ptc) are on a return, a circular calculator is generated. Why does this occur?

a. this would not occur because a taxpayer is not allowed to claim both the self employed health insurance deduction and premium tax credit.

b. because of the adjustment to income for the self employed health insurance, modified AGI, so the PTC will remain the same.

c. because of the adjustment to income for self employed health insurance, modified AGI is affected. The premium Tax Credit calculation is affected by changes to modified AGI which would then further change the self employed health insurance premium.

d. because of the adjustment to income for the self employed health insurance. AGI is affected. The premium Tax Credit calculations is then not allowed.

Expert Solution

below are the steps given by IRS in order regarding PTC and health insurance

Therefore, option C is correct.

ekkarill92 answered 2 years ago

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