We went through our federal return information and through everything, it said we owed $500. Then we got to the part where we enter the 1095-a form.
Our Monthly premium (column A) was $810.15 and the second lowest cost plan (column B) was $674.29. (Column C) the Monthly advance payment of premium tax credit was $0.00 for all except 2 months at $38.00 each (total $76.00).
Suddenly our federal return jumped up to getting back $7,500.
While I'm very happy to see that number, I'm wondering... did I do something wrong? Clearly that can't be right?
I've double checked all the info and everything was entered as it appears on the form.
I've also deleted the entry (back down to owing $500) and then re-entered it - to see the return jump back up to $7,500.
Any help is appreciated!
"(Column C) the Monthly advance payment of premium tax credit was $0.00 for all except 2 months at $38.00 each (total $76.00)."
You apparently did not receive any (well, $76.00) of Premium Tax Credit (PTC) during the year to reduce the cost of your ACA health policy. This is why it's the "Affordable Care Act" - the government pays some or all of your insurance premium.
Since the government apparently paid very little during the year, at the end of the year when the reconciliation is done, you are repaid all the PTC that was due.
Did you deliberately decline any PTC during the year? Some people do, because they don't want to owe any PTC at the end of the year.
I did deliberately decline receiving any credits - but I actually just discovered my issue.
I had incorrectly entered a 1099-G (state return) form under the also labeled 1099-G for unemployment.
We didn't receive any unemployment, but it was categorizing us as being eligible and therefore eligible for a higher health insurance premium credit.
Once I corrected the placement of the 1099-G form information and removed any mention of unemployment, the refund went way down again, sadly...