Went through my taxes today, and when I put in my 1095-A it said I owed $300. I am confused by this. In Mid Feb I went from a part time to full time job where I was given employer healthcare. I canceled the Marketplace gov't healthcare I had at the end of Feb, and then started employer health insurance March 1. According to what I've been reading, the taxes is because of the tax breaks that I got for my estimated income.
Well, at the time that was my income, when I got a full time job that did up my income slightly. I also received unemployment ($5,000) when I was furloughed due to covid, and that is being added. I'm not sure I understand why I'm being penalized when I wasn't even on that health insurance anymore.
Previously posted by another Intuit Tax Expert" about a year ago (VictoriaD75) If you purchased insurance through the marketplace and received a 1095-A, that must still be reported on your return. This will calculate the Net Premium Tax Credit on Form 8962. This form reconciles the amount of the credit available to you with the amount already received as an Advance Premium Tax Credit. The result could be additional credit owed to you, or you may have to repay any amount already received in advance. Because of either of these results, it is important for taxpayers to include the information from Form 1095-A on their return.
Follow these steps:
- Click on Deductions & Credits under Federal
- Under the menu for Medical, click Start/Revisit next to Affordable Care Act (Form 1095-A)
- Answer Yes indicating that you have the form to enter
- Complete the information on the next screen to match your form and click continue
The Premium Tax Credit for purchasing health insurance through the Healthcare Marketplace (1095-A) is based on your actual ANNUAL income. So even though you only had the Marketplace insurance for a few months, the final credit is calculated based on your income for the ENTIRE year.
So if your ANNUAL income was higher than you had estimated to the Marketplace, that usually results in needing to repay the part or all of the Advance credit that you received (column C of the 1095-A)