Doing a Federal return for my son (filing Single) who had Marketplace coverage through his state site (New Jersey) for entire year 2024 and has received his 1095-A. We knew when my son applied for coverage in late 2023 that he wouldn't be eligible for the Premium Tax Credit (PTC) because his employer offers minimum essential coverage. He indicated as such on the state's Marketplace site when signing up for Marketplace health insurance, and as a consequence he did not receive any Advance PTC (APTC) nor any NJ subsidy for any months in 2024.
As a consequence, my understanding via reading Form 8962 instructions and Pub 974 is that my son does not need to file Form 8962. However, when I entered the data from his 1095-A into TurboTax (Deluxe desktop Windows version), TurboTax created a Form 8962 with an associated PTC for him. I could not find a way to input into TurboTax information asserting his ineligibility for a PTC.
If there is no such mechanism to assert such ineligibility into TurboTax, then it seems the only way to avoid generating Form 8962 and thus avoiding taking an improper PTC is to not enter his 1095-A data. However, I have seen assertions in this community and in TurboTax proper that failure to include his 1095-A data will result in rejection by the IRS when attempting to efile his return.
Is there an appropriate solution to this apparent catch-22? I hope I simply missed where in TurboTax I can indicate that my son is ineligible for any PTC.
Thanks.
Doug
