I started out the year with an ACA plan and a subsidy based on not having an estimated income for the year. In March, I subsequently found a job that offered a minimum value healthcare plan starting in May. However, because this plan was worthless (no prescription coverage, doctors not in-network), I chose to stick with the ACA plan. I updated my income in April after making this determination.
I received two 1095-A forms. The first covered January through April, reflecting my high subsidy. The second, covering May through December, reflected a reduced subsidy based on my revised income estimate.
However, because the employer plan technically met the minimum value standard, I believe I am not eligible for the subsidy I received from May through December. When filling out the 1095-A in TurboTax, I put the received subsidy amount, and TurboTax calculated, based on actual income and subsidy received, that I have to pay back $1655. But if I didn't qualify for a subsidy at all, the amount I should have to pay back would be $3429.
Is there a cap that limits my payback to $1655 and not the full $3429? Is there an option in TurboTax or on Form 8962 where I indicate that I had access to and refused a minimum value plan, so that TurboTax can calculate the correct amount that has to be paid back? How do I handle this so that I don't get flagged by the IRS when they process my employer's 1095-C (which indicates I was offered and refused their health plan) and compare it to my 1095-As?
