1095-A with unemployment

[blaerow]

I was on unemployment in 2021 and was on a bronze plan through the marketplace for the first 8 months of the year. I switched to a silver plan for the final 4 months of 2021 because I was told it would be free. However, turbo tax is showing me having to repay the difference between the amounts in column C and B. Is this correct? I thought it would be free since I was on unemployment.

thank you!

[FangxiaL]

Clarify: Did you see this screen when entering your 1095-A form?

And did you select Yes, we received or were approved to receive unemployment?

[blaerow]

Yes I did check the yes option.

I have 2 1095-a sent to me since I was on 2 different plans so maybe that is confusing TurboTax?

[JamesG1]

Did the two IRS Forms 1095-A overlap coverage?

Or did the first form report January through August and the second form reported September through December?

Please clarify.

IRS Form 1095-A is used to report certain information to the IRS about individuals who enroll in a qualified health plan through the Health Insurance Marketplace. Form 1095-A is also furnished to individuals to allow them to take the premium tax credit, to reconcile the credit on their returns with advance payments of the premium tax credit (advance credit payments), and to file an accurate tax return.

[blaerow]

They didn’t overlap. I had a bronze plan the first 8 months and a silver plan the final 4 months.

is there a maximum amount you can spend each month without having to pay it back? I thought it was free but did I go over the maximum allowed per month the final 4 months?

thanks.

[Vanessa A]

The amount for everyone is different. The marketplace makes the calculation based on your yearly income and applies it monthly. The final calculation is made on your income for the year, not the month.  So even if you earned only $10,000 from January through November, but then in December you somehow made $25,000, your premium tax credit for the year would be based on an income of $35,000. 

Sine you received unemployment in 2021, your income is considered to be no greater than 133% of the federal poverty line.  This means if you are single your repayment is limited to $325, if you file any other status, your repayment limitation is $650. So, if the overpayment received was more than that, you will not need to pay more than that back. 

[granthjr]

Can anyone clarify this..

did you have to actually file a weekly unemployment claim during 2021? or can you have an active benefit claim that was effective from 3/8/2020-9/4/2021 that you only received benefits for in 2020 and none in 2021. Does that mean I was approved for 2021 and just didn't receive any money?

does the "received or approved to receive unemployment" include if you have an active unemployment claim that was effective from 3/8/2020-9/4/2021, but didn't file a weekly benefit claim in 2021?

[Vanessa A]

You would have had to actually received unemployment, not just have a claim.  Approved to receive means you were eligible because you were not working, but the payment may not have been made in 2021.  Example, you were approved to receive unemployment on 12/27/21, but your first payment didn't come until 1/3/2022. 

If you were not eligible for unemployment in 2021 because you were working, then the 1095-A repayment limitation for UC does not apply to you. 

[granthjr]

ok, thank you for the reply! 🙂