My Form 1-95-A shows no advance payments for the PTC. I receive reimbursement from an HRA. TurboTax erroneously calculates that I get PTC in my return. How do I fix this?

[fiveboyds]

I need to let TurboTax know that I am ineligible for the PTC because of the HRA. I want to file my 1095-A but not have the software erroneously calculate that I get a big refund due to the PTC.

[MinhT1 · Accepted solution]

If you have received reimbursement of your health premiums through a HRA AND you have not received any advance payments of the premium tax credit for coverage for you or your family member (shown in column C of form 1095-A), then you are not required to enter your form 1095-A on your tax return. You are not entitled to the premium tax credit and entering form 1095-A would wrongly calculate a premium tax credit for you.

If you have already entered form 1095-A then delete it.

[fiveboyds]

Do I run the risk of an audit because I received a Form 1095-A and did not file it?

[Vanessa A]

If you received a 1095-A and filed a tax return that was accepted and you are not claimed as a dependent on someone else's tax return, then your return will likely be delayed and the IRS will reach out to you requesting that you file form 8962 which is the form that is generated when you enter your 1095-A.  When they do reach out, you will simply need to let them know your situation. 

This is not an audit, but a request for additional information. 

Did you print and mail your return?  E-file?  Was it accepted?

If you did not e-file and it is rejected, you may need to print and mail your return as the IRS has rejected many returns for not including the 1095-A. 

(Edited 2/14/23 @ 9:31AM PST)

[fiveboyds]

I have not yet filed. So I have a dilemma. I include my 1095-A in TurboTax and it calculates an incorrect PTC for me. Or I leave it out of TurboTax, my numbers are calculated correctly, but the IRS follows up with a request for me to file it. Why can’t TurboTax ask me if I received an HRA, so I can file the form but not be eligible for the PTC?

[DMarkM1 · Accepted solution]

No.  The IRS gets the same 1095A that you did.  Having no data in columns B and C indicates that you did not get any Advance Premium Tax Credit and you are not eligible for Premium Tax Credit.  Do not enter your Form 1095-A in TurboTax.  It is not required for filing.  Delete all 1095A entries and forms from your return.  

Here is an IRS reference Publication 974 

You must file Form 8962 with your income tax return (Form 1040, 1040-SR, or 1040-NR) if any of the following apply to you.

• You are taking the PTC.
• APTC was paid for you or another individual in your tax family.
• APTC was paid for an individual you told the Marketplace would be in your tax family and neither you nor anyone else included that individual in a tax family.

Here is the Healthcare.Gov reference as well. 

If you paid full price and are sure you don't qualify for a premium tax credit

• You don’t have to fill out or include Form 8962, Premium Tax Credit, when you file your federal taxes.
• Keep your Form 1095-A with your other tax records.

[DMarkM1]

@fiveboyds  Would you please confirm with a post here when you file without the form 1095A information included and your return gets "Accepted" by the IRS.  Please @dmarkm1 as well.  Thank you!

[Rick H]

According toTurbo Tax statement, the IRS will reject the return since you have a 1095-A and did not list it.  Has anybody fiiled the return yet to see what happens? 

[AmeliesUncle]

Is this a regular HRA, or is it a Qualified Small Employer HRA (QSEHRA)?

If you don't qualify for the Premium Tax Credit, the last time I checked TurboTax is not set up to correctly file and allow you to e-file.  If you don't mind your return being wrong by $1, a possible work around is to only enter one month of the 1095-A, and enter $1 for the SLCSP (column B).

[bri56]

I have the exact same HRA situation, but according to turbotax this solution will not work. The program says that your tax return will be rejected by the IRS if you do not include form 1095. 

Also,  turbotax will not allow zeros to be entered into 1095 columns 2 and 3.

How do we work around this?

[rthabash]

I contacted a Turbo Tax rep but she was not much help.  Not sure how much she really understood the problem and she is not allowed to give tax advice.  She said we could try and modify the numbers we enter in Column A, B, or C.  No real commitment to fix the issue.

So, I tried entering different amounts in columns A and C and the result was not a Premium health credit amount of $0.00.  I then entered $0.00 in Column B for each month, I got the same message saying you can't enter $0.00. So, I entered, $0.01 for each month (which it allowed) and  the result was a Premium Tax Credit of $0.00.  Note, Column C is still shown as $0.00. 

Summary,

- Column A is the same numbers as the 1095-A

- Column B is listed as $0.01 instead of $0.00

- Column C is same numbers ($0.00) as the 1095-A 

Both forms 1095-A and 8962 are now in the Turbo Tax list of files.  So we don't have an issue with the tax return getting rejected for not submitting the 1095-A document.  We did make a slight modification to Column B ($0.01 vs $0.00) but that resulted in a Premium Tax Credit of $0.00 (which is what we want)

[bri56]

This solution works as long as we go back and delete the yearly premium amount from the previous medical premium entry. For some reason the column 1 entries feed back and are added into that calculation resulting in twice the deduction.

Thanks for the help

[rthabash]

I am still waiting on another form before I can file.  So, let me know if you filed and everything is OK.  Thanks

[bri56]

I too am waiting. A 1099 has been delayed

[bri56]

I got the form I needed and submitted fed tax an hour ago.

It has been accepted