Hi, I have a question if there is anyone on here with the expertise to assist in this area.
We live in California and received premium assistance from both the Federal and State of California for a healthcare plan bought on CoveredCA.com.
Everything looks good on the Federal side; all of the premium assistance we received from the federal government was applied on our Federal return.
But I am disappointed and quite confused with what is occurring on our state return. Here are the details:
- We received STATE premium assistance in the amount of 487/mo for the first 4 months of 2021, for a total of $1948 for the year.
- Our modified AGI for the year was $75,560 for 2021.
- I called CoveredCA to confirm that in our application at the beginning of the year, we had estimated our AGI for 2021 was to be $100,000. So they were providing premium assistance at the level like we were to make $100,000, which is of course significantly more than the $75,560. That SHOULD mean that we shouldn't have to pay back ANY of the premium assistance from the State.
- BUT Turbotax has calculated that we have to pay back ALL of the $1948 premium assistance that was provided to us upfront in the first 4 months. I don't understand how this can be.
- I have printed out CA form 3849 as well as the smart sheets associated with this form. Unfortunately, even though I am not an unsophisticated taxpayer I find this form and worksheet nearly incomprehensible in terms of understanding how this has been computed.
- Is it possible that TurboTax could be calculating this improperly? Or can someone provide me with some other reasonable explanation as to how this can be the exact opposite of what I think it should be?
Anyone that can assist me in any way would be appreciated.
Thanks,
Phil
