1095 A

[wendilla]

Hi,

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

[VictoriaD75]

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.

Advance Premium Tax Credit

[AmeliesUncle]

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.

[GlenA1]

HI, This is my first time using this "community" and  I am not sure how to pose this question to everyone, not just as a reply to this post. Please forgive me if this is wrong. My problem is that TT says that we qualify for $3790 for the health insurance discount from the marketplace. This is incorrect. My application with the marketplace shows that we qualify for around $11000 !  Where does TT come up with the figure it uses?

Because we got around 11000 in health insurance discount, TT says that we need to make up the difference. TT states that the discrepancy could be because we made more for the year than we estimated. This is also not true - we actually made less than we estimated.

This error is costing me $650 . Any advice on how to resolve this ( or  for me to state the problem more clearly?)

Thank you!

GlenA1

[DaveF1006]

The reason why there is a big disparity the amounts is that you underestimated your income in the beginning of the year when you reported your estimated income to the marketplace.  As a result of your income projection in the beginning of the year, you were eligible for marketplace subsidies of $11,000.

In reality, you made more money than your initial projection. As a result, you must to pay back the shortfall between your original income estimate vs the amount of income you earned in 2021. 

Please read this IRS link for further details especially Question 4, which pertains to your situation.