1095-A Covered California deducting over 8k

[Lollymaria]

I had Covered California last year when I did taxes and everything was fine entering my 1095-A.

My wife and I file Married (file separately), both that year and this year.

This year, I did my taxes fine, but when my wife gets to the 1095-A, it asks her "Did you or your spouse have covered California or Affordable health care....etc" she clicked yes because I did, when she enters my info it deducted over 8K from her taxes, plus I paid my premium for Healthcare, so we are approaching over 10k to use Covered California?  Last year it did not do this and we filed exactly the same.  I don't believe last year it asks if "you or your spouse". This year it does.  I tried to file both married and married (separate) and it still deducts 8k.  Has something changed? Nothing that I know has changed on our end, both in healthcare and income.

[Vanessa A]

If you are filing separately, then you are not eligible for the Premium Tax Credit. However, if you are filing separately, then she should not enter your 1095-A on her return.  Only you would enter this if you both were not covered.  If you both are covered, then you would both enter it on your returns, but then you would allocate the premiums and everything so that the total of the premiums are 100% instead of both of you claiming the full amount.   This  would fall under Situation 2 so you would split everything 50/50.

What was your filing status last year?  Did your income increase from last year?  An increase in income could cause you to have to repay some or all of your Advanced Premium Tax Credit if you used the Married Filing Joint status.  If your income is over 400% of the federal poverty level, you would have to repay all of your premium tax credit. 

Since it is asking about the spouse, be sure that she is selecting that you are married filing separately if she was not covered on the policy. 

Look at your 1040 from last year and compare it to this year.  A change in income or filing status, would affect the premium repayment.  

[Lollymaria]

Hi Vanessa, Thanks for your response.  My issue is that weather my wife files Married Jointly or Married Separately, TurboTax asked the question below.  In both situations it will deduct the 8k.  I think I misread this, I think it says "if my wife claims me as a dependent"?  If that's the case then the answer is "NO" and this issue is resolved. What do you think?

Thanks again!

[Vanessa A]

If you are filing separately, then answer NO for this question.  Your 1095-A should not be reported on her return.  It only goes on both returns IF you both are covered or have a person on each of your returns that are covered. This is not a question that is going to the IRS, this is a question that tells TurboTax whether or not to have you fill out the 1095-A.