Handling of 1095-A form and Individual Coverage HRA

[Keith40]

I received a 1095-A form from Marketplace for my 2022 health insurance.  I also received from my employer (I am a retiree) a HRA during the 2022 calendar year as reimbursements for my premiums.   Based on the fact that I had an HRA for 2022 and information I found on the IRS 8962 publication, I do not qualify for the Premium Tax Credit (PTC) - however TurboTax is generating an 8962 form and applying a PTC to my return when answering yes to the question if I received a 1095-A and entering the information.  In addition, I did not take nor received and APTC payments through the year as I knew I had the HRA.  The values in column "C" are zero on my 1095-A form. 

How do I get TurboTax to account for the HRA and determine that I am not eligible for the PTC even thou I received and entered a 1095-A?

[ThomasM125 · Accepted solution]

You should not enter the form 1095-A information in TurboTax. You are not required to complete Form 8962 Premium Tax Credit unless you received advance premium tax credits or you qualify for a premium tax credit, which you do not.

[mghoward]

Since I also have this same situation of having an HRA but received a 1095-A with the original cost of premiums at full price in column A for the 2022 calendar year, how do you get TurboTax to not require filling out the 1095-A?  Or do I change the numbers in column A of this form to something like $0.00 or $1.00?

[MinhT1]

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. 

In TurboTax, answer that you did not receive form 1095-A.

You are not entitled to the premium tax credit and entering form 1095-A would wrongly calculate a premium tax credit for you.

[Dennis-L]

When you get to the part where TurboTax asks you if you received a 1095-A, it should ask you if you used an HRA.  If you reply yes, it should skip filling out form 8962.

Not everyone knows that the tax law prohibits you from using an HRA and taking the PTC.  If you aren't aware of this, TurboTax will fill out the 8962 form and you will take a credit you are not eligible for.

[harperv]

Turbo tax does not ask if I used an HRA. The only way I see for it to not apply the credit is to not enter the 1095-A information. I hope this does not cause my return to be rejected.

[BillM223]

Try the following:

Your understanding that taxpayers who have an ACA policy, whose premium is paid for by an HRA, is correct, that these taxpayers should no get PTC.

What we need to do is a workaround to see if we can get the 1095-A into your return (so that it won't be rejected on e-filing), but also doesn't give you PTC that you don't deserve because of the HRA.

So let's try this. When you check off that you have a 1095-A in TurboTax, the screen will be opened so that you can enter the values month by month. BUT you are not going not enter the values on your 1095-A; you are going to enter these:

January, columns A & B - 1.00 (i.e., $1).

put 0.00 in every other column.

If you can, to save keystrokes, enter 1.00 1.00 0 for January, and then do the copy for every other month (this works in the CD/download version - I haven't tried it with Online).

This should result in 1.00 in every entry for columns A and B, and zeros (0.00) in column C.

When you run TurboTax, this should result in you being awarded no PTC. If you get some PTC, let us know.

Now, we understand that this means that you changed the entries on the 1095-A, and the IRS may notice this and send you a letter noting that your entries were not the same as the copy of the 1095-A that they got, and asking for a 8962 (at least).

If you get such a letter, just write back to the IRS that your ACA premium was paid for by an HRA, so you are not allowed any PTC. You made these entries as a workaround for the tax software that otherwise would have awarded you PTC that you did not deserve.

[mghoward]

What if your employer reimburses you via an HRA only a partial amount (1/3 in my case) of the premium that is reflected in column A of my 1095 A?  How would I account for this In TurboTax?  Thank you. 

[MarilynG1]

You can enter a reimbursement from your employer for medical insurance premiums you paid in the Medical Expenses section, under Deductions & Credits.  TurboTax asks in the interview for this section whether you had reimbursements, and the amount. 

Enter your 1095-A in TurboTax exactly as shown on the form in that section. 

• If you itemize, you can either subtract the reimbursement from the expenses you originally paid and enter the new expense amount, or enter it after you've finished entering all of your medical expenses. Either way, the reimbursement simply reduces your medical expense deduction by that amount.

@mghoward 

[crazysat]

So, in a nutshell YOUR SOFTWARE DOESNT WORK.  Rediculous I need some work around for federal rules.  I just went through mine, added the 1095-a supplemental numbers and gave me a 15k credit (complete b.s.).  

Problem is this - the STATES require what you paid, and you be be federally exempt, you need the numbers for proper state calculations.

Been turbo tax for 15+ years (and passed as no cd now so you can save $1), but you do not consider state implications and loss of deductions due solely to your shortsighted view on federal only.

Done with you.  Pathetic excuse really unless u could use the short form and actually not need u in the first place now.

[crazysat]

Easier solution if you have an HRA and not PTC eligable.  Leave the 1095-A eligible (including the SLCSP column), switch to forms view, pull up the 1095-A and change line 33, column B to 0 with leaving the SLCSP monthly populated (as a zero in column b for monthly isn't allowed, but allows/forces the total to zero when carried to the 8962 for no PTC, but allows the data to be used on the state form (if needed) and everything also passes the review check as well.

Sorry about my initial (immediate above) comment.  Was getting very frustrated, but kept at it and simply a matter of figuring out.  Turbobtax does really need a 'did you receive any amount via an HRA account from a current or past employer' after populating all of the 1095-A (so data is there for the state return if required).