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joep1313
Returning Member

Form 8962 and 1095-A question and IRS letter question

First, the situation: In 2021, we were enrolled in the health insurance marketplace the entire year. Initially, we did not think we were entitled to a subsidy because we were over the subsidy cliff. When the American Rescue Act passed and the cliff was eliminated, we then claimed a subsidy for the rest of the year (8 mo.).

 

Our 1095-A shows us enrolled for the entire year. Our premiums are correct as listed in column A. For column B, however, the SLCSP is listed as 0.00 for the first four months (corresponding to the four months we did not claim a subsidy).  This is not a shared policy and I did not get married or any other special circumstance. Turbotax, however, does not allow a zero to be entered for this field when entering the 1095-A info which makes sense.

 

So using the healthcare tax tool on healthcare.gov, I determined the correct SLCSP for those 4 months (and it turned out to be exactly the same as the other 8 months as listed on my 1095-A form so no surprise there). I completed and sent my return.

 

I received a notice from the IRS the other day stating that my form 8962 used the 'annual calculation' on line 11 of the form when I should have used the monthly calculations on lines 12 to 23 because the health marketplace information they received showed that SLCSP varied for one or more months. Which is correct, it did. There were zeros in that field for the first four months and non-zero the other 8. They want a corrected form 8962.

 

However, I cannot get Turbotax to use those lines of the form because the SLCSP is the same for every month. Again I verified the correct SLCSP numbers from the tax tool online but since that gives me the same number for the SCLSP every month, Turbotax decides to use line 11, annual calculation.

 

Any ideas on how to get Turbotax to do this the way the IRS wants? Or do I just do it by hand?

 

 

 

4 Replies
joep1313
Returning Member

Form 8962 and 1095-A question and IRS letter question

Sorry the introductory line for the third paragraph should read "So using the healthcare tax tool on healthcare.gov, I determined the correct SLCSP for those 4 months..."

Form 8962 and 1095-A question and IRS letter question

see what happens if you leave 0 fields blank. 

So using the healthcare tax tool on healthcare.gov, I determined the correct subsidy for those 4 months (and it turned out to be exactly the same as the other 8 months as listed on my 1095-A form so no surprise there). I completed and sent my return.

 

 

try lowering 1 month in the b column by $1

and then increasing another month by $1. 

the same for column c

thus the totals will be the same but the months will be de different which will hopefully populate the detail lines 

 

joep1313
Returning Member

Form 8962 and 1095-A question and IRS letter question

Thank you for pointing out the error. I corrected it.

 

You cannot leave the field blank either. You must input a number > 0.

joep1313
Returning Member

Form 8962 and 1095-A question and IRS letter question

By the way, Turbotax has a sentence on the 1095-A input screen saying "Click here if Column B on your 1095-A reflects $0."

 

If you click, then it then says, among other things, "For each month you had insurance, make sure you do not input $0 in Column B. If your 1095-A reflects $0, [use the healthcare.gov tax tool to calculate the correct amount to enter].

 

My exact situation and exactly what I did. However, again, following this procedure leads Turbotax to calculate the 8962 using the annual calculation.

 

The IRS letter says to use the monthly calculation.

 

It's dumb of course because they both calculate the exact same numbers. But...

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