Advanced Premium Tax Credit and Veterans Health

[jfletch81]

when I signed up for 2023 health care (in Q42022) I got the Advanced health Care tax credit (apprx $500/mo).  In March, 2023, I decided to see what VA health benefits I might be eligible for.  (Specifically I was trying to see if I would be eligible for Long Term Care thru the VA... my current private LTC premiums are more than 5k/yr... ouch.)   To see if you are even eligible for VA-LTC in the future, you have to enroll in VA health care, then they tell you.  (I'm not it turns out.)  Nowhere did I read that this made me ineligible for the advanced tax credit under ACA so I kept receiving it.  When I went to the portal to enrol in ACA HC at the end of 2023, the portal informed me that I would not be eligible for a tax credit in 2024 because I was enrolled in VA health care (in the lowest benefit category I might add).  So I THINK I have to reimburse the Feds for the tax credit (MAR-DEC, 2023).  How do I do that in TurboTax?

[RobertB4444]

You're going to enter the 1095-A that you received into TurboTax and enter all of the amounts as they are on the form.  That premium credit was based on your income so as long as you guessed your income pretty well the return won't show that you owe the credit back and it won't show that they owe you any additional credit.

Then you'll file the return.  If the feds decide that you owe back your premium credit then you won't receive a refund, you'll receive a letter stating that you have to return the credit that you received and that any refund that you have has been applied to the amount owed.  And they will figure the total repayment that you have to make.  

Don't try to pay it before they figure it out.  Your payment can get lost in the system if they haven't generated the bill yet.  File the tax return to get the ball rolling.  And then let them handle it.

@jfletch81