Decline Premium Tax Credit

[BB021]

I received a 1095-A.  I purchased insurance off of the exchange but also received Medicaid, so I cannot take the premium tax credit.  How do I decline the credit in TTDeluxe?

[xmasbaby0]

You had insurance from the marketplace?  But when you began to receive Medicaid did you inform the marketplace that you no longer needed that marketplace insurance?  You are responsible for telling healthcare.gov if there are any changes in your circumstances or coverage.      What happened?   Did Medicaid start sometime after you began the marketplace insurance?

[DaveF1006]

No, unfortunately there is not a procedure in Turbo Tax for you to deny the credit as there are no disqualifying questions when you complete this section for entering your1095 A information. 

What I suggest doing in to contact Healthcare.gov. here and call their 1-800 number. Explain to them you enrolled in Medicaid during the year and ask them how to proceed with the filing of your tax return. They may suggest one of several remedies.

1. Receive the the full refund in your tax return and then give you instructions on how to pay this back.
2. They might be able to issue you a corrected 1095 A to report on your return.
3. They may suggest not filing the 1095 A. When the IRS sends you a letter asking why the 1095 A wasn't included in your return, you can write back stating that you enrolled in Medicaid during the year and did not wish to receive the premium tax credit in your return.

Don't file your return until you notify them of your Medicaid enrollment and ask them how to proceed with your return. Be sure to document their answer just in case if you are questioned on this by the IRS.