1095-A and 1095-B Overlapping Health Coverage and Insurance Termination

[Edge10]

I have three issues related to overlapping health coverage  through the Healthcare.gov (ACA)  improper insurance termination and estimated income. Please let me know if you need clarification of the details.

I received both a 1095-A and 1095-B and for 10 months apparently had both state medicaid and coverage through Healthcare.gov with an APTC .   I had estimated my income above the amount to qualify for medicaid, but Medicaid never sent a denial letter indicating they stopped the coverage.  The freelance work never materialized and my income estimate turned out to be an overestimated , which did qualify me for medicaid.  I updated my income on the Healthcare.gov site in December 2020.

Additionally, the health insurance company improperly terminated my coverage for November and December 2020 for lack of premium payment within the grace period . The state insurance regulators agree the my coverage should not have been terminated .

Was is the best way to resolve this tax situation with the IRS?  How will this be handled in turbo tax ?

[Cynthiad66]

Enter the Forms 1095A and Form 1095B as shown because that is how they reported to the IRS.  If there is an issue with this at some point the IRS will contact you if there is a need to recapture A Premium Tax Credit.  Since you updated your information in December, that was ample time to issue the 1095s correctly.

However, it sounds like you overestimated your income so you might be due some sort of reduction in the the Premium Tax Credit.

Recommend submitting the 1095A as received.  For tax year 2020 there is no penalty for not having health insurance for Nov and December.  There is no federal penalty for not having health insurance since 2019, however, certain states and jurisdictions have enacted their own health insurance mandates. The federal tax penalty for not being enrolled in health insurance was eliminated in 2019 because of changes made

[Edge10]

Thanks for your response.  Sorry  for such a late reply am just getting to taxes again now. 

Is there any ramifications or issues in current tax year,  the future tax years  or with Premium Tax Credit for not paying the premiums?  I recall reading that not paying premiums may affect my future PTC.  If so,  should I dispute the insurance company decision to terminate my coverage so that it is remove from the healthcare.gov record.  FYI: for 2021 I am on the GetcoveredNJ health insurance system and no longer purchasing coverage through Healthcare.gov.

[Cynthiad66]

Cannot make a suggestion in that area.  Thank you for using TurboTax