Im helping my mom complete her taxes for 2019, and she had healthcare coverage from 01/2019 - 04/2019 which supplied a 1095-A form. The remainder of the year she had AARP coverage. I realize that I only have to supply the 1095-A form detail in my taxes, but why does her federal taxes owe grow to owning a lot more? She was getting a return before we entered her 1095-A details. She had coverage the remainder of the year but just through AARP.
Thank you for all your help!
Entering a 1095-A form may increase the amount of tax due if you received advanced premium tax credit.
When you enter your 1095-A you reconcile your premium tax credit.
If you received premium tax credit in advance, you may have to pay some or all of it back, if your income is higher than the amount used to estimate the amount advanced.
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Thank you for the reply!
how is it possible to confirm if she received a tax credit? I have done her taxes for the last few years and we have not had this problem nor setup a tax credit. Would this be something I could bring back to her insurance adjuster? I’m very certain she did not receive a tax credit or set one up but with what you wrote makes sense on why there is all of a sudden a cost. It was a shock. She also turned 65 which opted her into Medicare plan A in April 2019 so I’m confused on why she would get a tax credit knowing she would be changing plans just a few months into the year. I’m hoping it’s not a mistake her adjuster made. Thank you!!!