I have a 1095-A that coverage me just January and February in 2019. In February I cancel that policy and changed to a 1095-B with work private insurance. Now that I am filing my taxes, I am adding the info of 1095-A of those 2 months because is required. However, it shows that I have to pay back the entire amount that the insurance covered me in Jan & Feb. Now I have to pay back more than $500. This has to be wrong, how is possible that I have to pay back the whole amount? Please, someone, explain to me
TurboTax said that I " have to pay back some of your health insurance discount because you have earned more income than what you estimated when you enrolled". Yes, I have earned more than I estimated at the beginning of the year, but my health insurance was canceled within 2 months of use.
Thank you very much. This is my first time using TurboTax and I'm a little confused and scared.
* I am using Turbotax Premier
Advance Premium Tax Credit is a tax credit you can take in advance to lower your monthly health insurance payment (or “premium”). When you apply for coverage in the Health Insurance Marketplace, you estimate your expected income for the year. If you qualify for a premium tax credit based on your estimate, you can use any amount of the credit in advance to lower your premium.
- If at the end of the year you’ve taken more premium tax credit in advance than you’re due based on your final income, you’ll have to pay back the excess when you file your federal tax return.
- If you’ve taken less than you qualify for, you’ll get the difference back.
In the link below, you can estimate your credit based on your income information. You can use the income amounts when you applied for your insurance versus your actual income amounts to see the difference. It is possible that you have to pay back the entire credit.
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As was pointed out by Victoria, the credit is based on your annual income. So unfortunately, it does not matter if you had lower income during the months you had the insurance, the final credit is only based on the annual income.