turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Does Covered CA Montly Advance payment of Premium Tax credit also increase state tax?

I had got medical insurance through Covered CA with zero premiums in 20th Dec 2022 when I did not have income and qualified for it with zero premium.

I got a job in May 2023 and the coverage was not good. So, I continued and canceled it in Oct 2023.

I received 1095-A Health Insurance Market Place Statement

Under Part III, I see 321.90 in column A, 392.24 in Column B, 320.90 for each month from Jan to October.

When I enter those in TurboTax, it increased my Federal tax due from $2205 to $5191.

 

I understand that the federal tax due increased because of my mistake as I was not aware that I will owe the money back. Please confirm if that will also affect my state tax . Thank you.

 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
SharonD007
Expert Alumni

Does Covered CA Montly Advance payment of Premium Tax credit also increase state tax?

No, the advanced payment of your Premium Tax Credit doesn't affect your CA tax return, but it may affect your federal tax return when your advanced payment is more than it should have been.  In your case, it appears that you received more advanced premium tax credit than you should have and you have to pay it back which increases your federal taxes.

 

For more information refer to Covered CA Advanced Premium Tax Credit.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
SharonD007
Expert Alumni

Does Covered CA Montly Advance payment of Premium Tax credit also increase state tax?

No, the advanced payment of your Premium Tax Credit doesn't affect your CA tax return, but it may affect your federal tax return when your advanced payment is more than it should have been.  In your case, it appears that you received more advanced premium tax credit than you should have and you have to pay it back which increases your federal taxes.

 

For more information refer to Covered CA Advanced Premium Tax Credit.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies