Medical Premium Reimbursements

[mgwh686]

Could another solution be, on the 8962, Part III Line 27, just add the credit that we're not supposed to get back in, just washing it out?

[RaifH]

Rather than deleting Form 8962, you can change all the SLCSP premiums to 0 for the months you were not eligible for a premium tax credit, either because you were offered minimum essential coverage or were receiving reimbursement from other sources. 

Once you enter 0 as the SLCSP, the credit that you are eligible for should also be calculated as 0. 

The IRS says you may need to re-calculate the SLCSP reported on Form 1095-A if the amount reflected is incorrect because of eligibility changes. You can use the healthcare tax calculator if you were eligible for some months and not for others or some members of your family were eligible while others were not. 

@mgwh686

[john4kathy1]

Hello RaifH,

Thanks for answering.   I do have a few more questions.   How do I know if I was eligible for each month?  I did some more irs.gov checking and found a Interactive Tax Assistant (ITA) for "Am I eligible for the Premium Tax Credit".  It never asked if I was reimbursed from a HRA and  after answering all the questions it said, that I qualified for the Premium tax credit.  So, on the IRS site, one Q&A says I am not eligible while another place says that I am.  Would I be partially eligible if my HRA only covered some of my insurance?  One of the first Turbo Tax responses indicated I needed to take out my reimbursement amount.  If my insurance was $2000/month and my HRA paid $2000/month then, I would assume I am not eligible.   If I paid $2000 and my HRA was only $1500 would I still lose all eligibility?  If I don't lose all eligibility, how do I calculate/enter the amount I am eligible for?    

[mgwh686]

I think this is another solution? 

In the IRS Instructions for Form 8962, it says "Who Must File":

"You must file Form 8962 with your income tax return (Form
1040, 1040-SR, or 1040-NR) if any of the following apply to you.

• You are taking the PTC.

• APTC was paid for you or another individual in your tax family.

• APTC was paid for an individual you told the Marketplace
would be in your tax family and neither you nor anyone else
included that individual in a tax family.

If any of the circumstances above apply to you, you must file
an income tax return and attach Form 8962 even if you are not
otherwise required to file. "

 I am not taking the Premium Tax Credit, because I am not allowed to due to my use of the HRA, therefore I don't need to submit the Form. In order to avoid generating the form in TurboTax, I did not enter my 1095-A into the program (actually, I deleted it after having already entered it). There is no real requirement to enter the 1095-A into TurboTax, as it actually doesn't get transmitted to the IRS -- only the information on the Form 8962, which reflects what is on a 1095-A gets transmitted.  I'm assuming that when the IRS analyzes my return, they'll see that there is no Form 8962, and if they try to match it up with their receipt of my 1095-A, they'll just let it go because there was no Advanced PTC ever given to me on the 1095-A, and I'm not asking for any PTC or reconciliation via the Form 8962. 

Does this make sense?

[JulieS]

Yes, that makes perfect sense. If you aren't getting an Advanced Premium Tax Credit, you don't have to file the 8962, so you can side step the issue completely. 

[mgwh686]

JulieS  Thank You!