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rprastein
Level 2

Why am I not seeing a Premium Tax Credit? 2020

When I signed up for Covered California in June 2020 when my COBRA coverage expired, I anticipated income of about $66,000 for the year (married filing jointly, but hubby is on Medicare).  I didn't have any estimated Federal premium tax credit at that time, so none was advanced to the insurance company, but I did have a couple hundred dollars knocked off the premiums due to a California subsidy.

 

Now I'm doing my 2020 taxes, and our income is less than a third of what I had anticipated (I forgot to do a Roth IRA conversion that I had intended to do...), and after the unemployment exclusion it's only about $10,000, yet TurboTax is still saying we are not entitled to any premium tax credit.  I can't find any explanation of how this is calculated in TurboTax, they just wave their figurative hand and tell me not to worry my pretty little head about it, they'll figure it out for me.  The Covered California web site won't let me see information for 2020 eligibility, but they'll let me apply for 2021 or look at (but not change) my information from my 2020 application.  I remember last year I had seen some tables of what income levels were eligible for which benefits, but I can no longer seem to find them.

 

How can I see where/how the determination is made that I'm not eligible for a credit, and how far I am from being eligible?

 

Thanks,

 

Rebeccah

 

3 Replies
AmeliesUncle
Level 11

Why am I not seeing a Premium Tax Credit? 2020


@rprastein wrote:

none was advanced to the insurance company

 

our income is less than a third of what I had anticipated (I forgot to do a Roth IRA conversion that I had intended to do...), and after the unemployment exclusion it's only about $10,000


 

 

Your income is too low.  To qualify for the credit, your income (Modified AGI) had to be at least 100% of the Federal Poverty Level, which is $19,460 for a household size of two.

 

If you had received some Advance credits (column C of the 1095-A), you would have met one of the exceptions.  But with no Advance credit, your income is too low to qualify for the credit.

 

rprastein
Level 2

Why am I not seeing a Premium Tax Credit? 2020

You're right.  I had to print out the records copy of my draft and look through everything to see the juxtaposition.  2019 and 2020 are killer tax years for me -- lots of intersecting issues, lots of forms and worksheets, and confusing instructions and some software glitches, combined with misunderstandings and data entry errors on my part.

 

Rebeccah

 

DawnC
Expert Alumni

Why am I not seeing a Premium Tax Credit? 2020

The premium tax credit came about after the Affordable Care Act in 2009. You must meet certain requirements to claim this refundable tax credit and file Form 8962 with your tax return.   And yes, TurboTax takes the figures from your Form 1095-A and does the calculations behind the scenes.  

 

Eligibility requirements for the premium tax credit   This link has more details regarding the credit and Form 8962.  

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