Form 1095-A

[CMS2324]

After filling in form 1095-A, as required by Turbo Tax, I was then notified I had to pay back some of my health insurance discount.  This is odd, as I was told by my Health Insurance Agent, our income falls below the $65K limit for 2 person household in my state and zip code.  My insurance agent assured me I was entitled to the entire discount and should not have to pay anything back.  Please tell me there is a glitch in Turbo Tax regarding this and what must I do to continue my return.  Please advise.  Thank you 

[JamesG1]

I am not aware of an issue.

Your file IRS form 8962 to reconcile the advance premium tax credit with the actual premium tax credit.  If the advance premium tax credit is more than your premium tax credit, you have excess advance premium tax credit and you must repay the excess,

Did your income change from the projection that you gave the Marketplace at the beginning of 2022?  If it did change, was the change in income reported to the Marketplace?  Did the members of your family change from what was reported to the Marketplace?

Instructions for IRS form 8962 (page 2) states:

The Marketplace determined your eligibility for and the amount of your 2022 Advance Premium Tax Credit using projections of your income and the number of individuals you certified to the Marketplace would be in your tax family (yourself, your spouse, and your dependents) when you enrolled in a qualified health plan. 

If this information changed during 2022 and you did not promptly report it to the Marketplace, the amount of Advance Premium Tax Credit paid may be substantially different from the amount of Premium Tax Credit you can take on your tax return. See Report changes in circumstances when you re-enroll in coverage and during the year, earlier, for changes that can affect the amount of your Premium Tax Credit.

@CMS2324 

[CMS2324]

JamesG1.........Thanks for your quick response to my dilemma.  However, my situation is this:  For 2022, the discount I was quoted and received, from my insurance agent and the Marketplace, was based on a total income of $65K for 2 persons in the State of FL, which allotted me, a discount of the Health Insurance Premium by $629.00 per month.  Since our Adjusted Gross Income for 2022 is only $58K, I fall well within the limit of the $65K income and my $629.00/mo discount.  I should not have to pay the $2,862.00, which is currently being requested via Turbo Tax.  (BTW, it is my understanding in putting in the 1095-A form information, the Form 8962 is automatically generated by Turbo Tax for me.)  I need to be able to reduce the requested payment of the $2862.00 down to Zero.  How am I going to make that happen?  I am not supposed to have to pay anything back.  Very frustrated  😕

[Mike9241]

get a new agent because he's wrong.  form 8962: once your household income (line 3) goes over the poverty line of about $17,400 (unless you live in Hawaii or Alaska slightly higher)  a % is computed on line 5. if it's 150% or less there is no repayment. also, household income may not be the same as adjusted gross income. 100% of social security benefits are included for household income purposes as well as municipal interest and certain excluded foreign earnings. if it's more than 150% then a fraction from the tables included in the form's instructions goes to line 7. household income line 3 is multiple by the number on line 7 = line 8a. that's how much you should be contributing for an SLCSP policy. if it's more than the total in column B of the 1095A you must repay the entire advance premium up to $2800. if the total of column B on the 1095A is more than line 8a that's the PTC advance you should have gotten.  if it s less than what you got you repay the difference.

Up to $2800

admittedly this is kind of complicated so you may need to see the actual form to see why but it's not uncommon this year for taxpayers to have to pay some or all of the PTC advance.

[Vanessa A]

Yes, you are under the limit of 4 times the poverty line, however, since you are more than 150% of the poverty line, you are only allowed to have a portion of your premium paid.  TurboTax is calculating the actual premium tax credit you should have received vs what you actually received. Basically, the calculations on form 8962 is saying that you received too much of a Premium Tax Credit.   This number is also based on your SLCSP. So, if you chose a plan that was a lot more, then you may have inadvertently received too much.

At tax time, these numbers are reconciled with the credits you were given.

You cannot change these amounts, but you can go to the print center and see your form 8962 to see how TurboTax is calculating how much excess premium tax credit you received. 

[CMS2324]

Mike9241.....................Finally......being sent in the right direction.  However, no need to be so harsh on my insurance agent (I'm sure they aren't given half of the information from the government to be passed along onto their clients).  Nonetheless, you have given me more detail than I have gotten before.  Thanks so much for taking the time to get back to me.  Very much appreciated.  CMS2324    🙂

[CMS2324]

Vanessa A......thank you for suggesting going to the print center to look at my Form 8962 within Turbo Tax.....this shed some light on what "actually" goes on with the calculations and puts my mind at ease this is being done correctly.  Much appreciated.     CMS2324