Deductions & credits

If you had coverage through the Marketplace, you are required to reconcile advance payments of the premium tax credit. 

Reporting changes in circumstances promptly will allow the Marketplace to adjust your APTC to reflect the PTC you are estimated to be able to take on your tax return. Adjusting your APTC during the year can help you avoid owing taxes when you file your tax return.

MEC eligibility when Marketplace does not discontinue APTC.

If an individual is enrolled in a qualified health plan for which APTC was made and the individual is or will soon become eligible for other MEC, you must notify the Marketplace about the other MEC and that the APTC for the individual’s coverage should be discontinued. If the Marketplace does not discontinue APTC for the first calendar month beginning after the month you notify the Marketplace, the individual is treated as eligible for the other MEC no earlier than the first day of the second calendar month beginning after the first month the individual may enroll in the other MEC.

For this situation –

January – April, he is eligible for the APTC. 1095-A is correct for those months. The change in coverage available was reported to the Marketplace. Marketplace insurance was continued.

May – Since the Marketplace did not discontinue APTC beginning in May, he is treated as eligible for May. 1095-A remains correct for this month.

June - October, he received APTC but was eligible for MEC.  1095-A columns A and B are incorrect for these months.

November – December, he received no APTC, and this is reported correctly on the 1095-A.

You will need to change the entries in columns A and B for the months of June – October to match the numbers listed for November and December.  This will allow for the payback of the APTC for the month received where he was eligible for MEC.

This is based on example 3 in Pub 974. The examples referenced can be found here.

@piersons