You will complete the ACA section in TurboTax based on the premiums you paid and the assistance you received for 2023. Answer the questions and follow the prompts in the program. Notify your Marketplace plan that you no longer qualify for assistance right away.
Once you are enrolled with VA for your health care, your enrollment meets the standard for minimum essential health care coverage under ACA. You are not eligible for assistance to lower your cost of health insurance premiums if you choose to purchase additional health insurance on the Marketplace to complement your VA health care coverage. Also, you cannot receive a tax credit for yourself when enrolling within the Marketplace if you are currently enrolled with VA for your health care.
Since VA care meets the standard for health care coverage, you wouldn’t be eligible for assistance to lower your cost of health insurance premiums if you chose to purchase additional health care coverage outside of VA. However, you may still purchase private health insurance on or off the Marketplace to complement your VA health care coverage.
See this FAQ from the VA for more information:
Can a Veteran or other beneficiary remain enrolled in VA health care and get the tax credit? No. According to ACA, if an individual has health insurance coverage (such as VA health care), he/she is not eligible for a tax credit to purchase additional health insurance coverage.
Though you can still purchase additional coverage through the Marketplace, you became ineligible for premium assistance in September 2023. It is up to the insured to contact Healthcare.gov to inform them when no longer eligible for the credit.
Because you did pay the premiums and you did receive assistance, that is what you will show on your tax return. Contact Healthcare.gov or your local Marketplace representative right away to inform them of your VA coverage.
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