1095-A & 1095-B

[fkhalilz]

Hello,

I have received both 1095-A and 1095-B. TT only asks for 1095-A form which I have entered.  I have not entered the information on 1095-B into TT.

I received the 1095-A for the portion of my ACA health coverage while I was a resident of Texas.  I was getting premium tax credit for this coverage due to my income level. Then I sold my home and 2 rentals before moving to California and signed up for another ACA health insurance without the premium tax credit.

The sale of rentals created a large capital gains and apparently increased my income such that I am no longer eligible for the premium tax credits shown in 1095-A form. Needless to say my 2021 tax liability computed by TT has increased significantly and I need to return the credit back to the IRS. Here are my questions:

Q1. Please confirm that I do not need to enter 1095-B into TT.

Q2. Please confirm my understanding that the capital gains from the sale of my rentals is added to my ordinary income to determine my eligibility for premium tax credit.  Note: my ordinary income did not change but the added capital gains put me out of the income range to be eligible for the credit. Is there anything I can do to reduce my huge tax liability?

Thank you!

[Bsch4477 · Accepted solution]

1.  You can ignore the 1095-B. 

2.  Yes, the capital gains is considered with your other income and there is no relief for that. 

[bargere]

I think there is an error in TT; It ask if you have received a Form 1095-A.  I didn't, I got a Form1095-B which from my Military Pay. TT doesn't address this variation of the Form 1095. My understanding from what I read on the military pay site is that I don't need the Form 1095-A and can ignore those entries.  

Ed

[MaryK4]

TurboTax will ask you if you received a 1095-A and you just answer NO and continue your return.  @bargere