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Level 1
posted Apr 26, 2021 6:29:51 PM

Why did my California estimated refund increase so much after entering in my Health Insurance info?

In 2020 I was enrolled in a Cover California health plan.  I received a federal 1095-A tax form and a California tax 3895 tax form.  When I entered in the information for the federal return, it said the amount paid was correct so I would not need to repay anything, and therefore had no effect on my estimated tax refund. When I entered in my information from the California 3895 form for my state taxes, my estimated return increased by approximately $11,000.  All the information on the two forms matched each other, except the amounts in the "C" column (monthly advance payment of premium assistance subsidy) on my state tax form was significantly lower than that that was listed on my Federal 1095-A form.  I've never had a state return this big before, so I'm just curious if this sounds correct... Thanks in advance.  

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2 Replies
Employee Tax Expert
Apr 26, 2021 7:35:59 PM

I would recommend reviewing your input to ensure the amounts were entered correctly as it sounds like there may have been an amount entered incorrectly in the interview sections.

 

Go to your Federal interview section. 

  1. Select Deductions & Credits 
  2. Scroll down to All Tax Breaks 
  3. Select Medical 
  4. Select Affordable Care Act (Form 1095-A)
  5. Review the amounts entered in this section.

Once you confirm the amounts above, go ahead and review your input in the state interview section to verify everything is entered correctly there as well.

  1. Select State in the black panel on the left hand side of your screen when logged into TurboTax.
  2. This will take you to a screen titled Let's get your state taxes done right.  Click continue on this screen.
  3. You will see the following screen titled Status of your state returns.  Select Edit to the right of California.

 

Proceed through the screens and answer the questions as prompted for your health insurance coverage.  Be sure to follow the screens carefully as sometimes you may need to enter a zero or select a yes or no answer for the tax return to populate correctly.

 

What is Covered California

New Member
Apr 18, 2022 4:20:47 PM

I had a similar problem. My federal amount on 1095A form column C was $15,000. The CA state 3895 form column C total was $0. TT asks for the numbers for 1095A, not 3895 (at least that I could find). The state refund went from $5000 to OWING $15,000.