I'm going to try to explain this situation the best I can, please bear with me as I'm on very few hours of sleep - I'll be happy to clarify anything that doesn't make sense.
I'm a W2 employee as well as 1099'd from a couple places as I work in Real Estate and also do home valuations for banks on the side. My taxes every year are already hard enough, but this year after I've gotten married has been a NIGHTMARE. My husband and I got married on 12/11/24 in order to stay within the legal timeframe that a K1 visa calls for - so RIGHT at the end of the year. Because it's recommended that I file married filing jointly, they view his income as both our income all year... but I digress. I do rely on ACA and have since it first came out in 2014. It's always been a struggle at tax time due to my 1099 income, not knowing how much I'm actually going to make that year. Sometimes, I do have to pay a penalty for exceeding my advance premium tax credit for making too much. This never really bothers me too much, as every time this happens, my refund from my W2 income just gets lessened and I've never had to really dig into my bank account to pay it back - yes I realize my refund is my money and I shouldn't look at it that way - however, after my write offs from 1099's, I'm usually looking at owing every year and 9 times out of 10, a good year for me is getting a couple hundred dollars back, or settling around $0 refund.
Enter my husband and his income.... he moved here at the end of September last year, and received his last paycheck on the day he flew over. He comes from Jersey, which is a small island between the UK and France. Since I usually owe on taxes (which I pay out of my refund) I'm one of those who waits to the last minute to do my taxes because I never usually have a refund to look forward to... and the government shouldn't get my money any earlier than necessary. Big mistake this year. I never realized just how messed up the government views marriage when filing jointly for the first time, especially with a husband from across the world. In the beginning of April I requested that my husband get me a copy of his last paycheck which would show his YTD and his taxes paid for the 2024 year. Of course, our government wants to verify that he paid his taxes on his income... that he made in Jersey. I started with my tried and true H&R Block Deluxe, which I use every year. Everything was going smoothly until I got toward the end and after I input my info for ACA, my small refund turned into owing nearly 2K. My heart sank. After further research, and lots of googling and frantically turning to ChatGPT, I learned that my version of H&R Block doesn't allow you allocate your ACA payments - basically it's looking at our "combined" income and saying WOAH, you REALLY underestimated your income for this year, so now we have to charge you $1900 for your underpayment (Keep in mind, ACA repayments are capped by increments - more on that later). However, there is a form that allows you to "allocate" your payments which allows you to show that your combined income didn't start until the end of the year, and that they should only be looking at your income from January to November, and when it comes to December, that's when they can ding you a bit and charge you a little extra. Anyways, H&R Block DOES have this form, but it's only accessible when you open your forms an check a box saying you want to allocate and do manual calculations. When you try to click it, you get an error saying that you can't e-file when you do a manual override. This wasn't an option for me as I did not have time to do this manually (the manual calculations are a nightmare and I could never trust that I did the equation properly, and then submit it by mail and hope I did it right).
I then moved on to FreeTaxUSA... this one claimed to support the ACA allocation - HOWEVER, when I got to the foreign tax credit (form 1116) I was told their software only supported foreign tax credit when the foreign income and taxes are reported on a K1, 1099-int, or form 1099-div. I had NO idea what this meant.. and I was running out of time.. so I moved on to Tax Slayer (all of this drama was between Friday night and last night). Tax Slayer was going great... not as user friendly as I would've liked... it definitely took me the longest to fill out.... so, by last night, I got to the ACA section. I input all the info, I did the prompts step by step as far as what I should be inputting according to heavy research/google/ChatGPT, I checked off that I needed and got to the end. Somehow this time around it was saying I owed nearly $1500. I opened my preliminary docs before finalizing and it was still showing my ACA repayment was $1900. According to my FPL of about 250%, my ACA repayment should be capped at $1000. According to ChatGPT (we became close friends recently), TaxSlayer's software did not calculate my ACA repayment properly based on my FPL %. And for those who are probably weary of ChatGPT, please know that did hours of due diligence on my own - including finding the federal chart directly from the government and verify that my FPL % was in fact capped at a repayment of $1,000. I called TaxSlayer support, and the first lady said "oh you need to calculate these numbers differently in these 3 boxes" so I thought - great, I'll change these numbers and it'll change the repayment amount. It didn't. I tried to call them back, was hung up on several times due to "high call volume" and the next lady I got was totally hands off and told me that she couldn't help me with calculations or readjust calculations that the software was getting wrong.
So I cried a bit, and around 10PM last night did a last ditch effort over at TaxAct. ChatGPT did assure me that it did support the ACA allocation, however at 11:59PM when I was 98% done, I couldn't find anywhere to allocate... anywhere. It told me to search for form 8962 V, nothing. I was a blubbering mess. I was/am so tired. I missed the deadline, and now I'm going to probably be paying a huge late fee.
My last hope is TurboTax. I'm almost afraid to ask because sometimes when you're having an issue this big, it feels like you're the only one who's facing said issue. But my hope is that someone lovely and kind here can assure me that spending $50+ on TurboTax deluxe WILL support both the 1116 form and the 8962 allocation. OR Maybe... someone has used one of the MANY programs I've tried to use and guide me in the right direction for these issues. I'm desperate!
If you've made it this far...... thank you