1095-A creating an amount due on individual with zero income

[mcintyre210]

Why is Turbo Tax assessing tax owed after entering 1095-A info on an Individual with zero income or a loss?

[SharonD007]

The 1095-A is used to complete your Premium Tax Credit Form 8962 and reconcile your Premium Tax Credit. You may have taken more premium tax credit in advance than you were qualified for based on your income, which is why you may owe taxes.

You can review The Health Insurance Marketplace and the TurboTax article What is Form 1095-A: Health Insurance Marketplace Statement for more information.

If you are unable to pay your balance due to the IRS, please review the TurboTax article Unable to Pay Your Tax Bill? Here’s What To Do.

[mcintyre210]

I'm just confused on where you said "based on income".  There was no income.

[LeticiaF1]

You can have a balance because you received more Premium Tax Credit during the year.  When you apply for insurance they use an estimate of your income for the year to calculate the amount that you pay each month, if the estimate is not correct it ends in either having a credit or a balance due.  This could happen even if you had no income during the year.  

If you have difficulties paying the balance due, you can work with the IRS.  You can set up payment arrangements.  If you would like more information visit Publication 4849, Can’t Pay the Tax You Owe?

[mcintyre210]

That seems really messed up, but thanks for the clarification. 

The 1095-A received has a blank or zero in the very last entry for Column A and Column B, but a value in Column C.  Turbo Tax is rejecting this even though it's exactly what is entered in the 1095-A.  Thoughts?   The auto pay stopped mid year on the premiums yet they entered a Premium Tax Credit for that month!  

[JamesG1]

Do columns A and B correctly total the the amounts on line 33 Annual Totals?

I have seen these forms where the line 33 Annual Totals is correct but the columns do not total correctly.

Perhaps an entry has been left off?

@mcintyre210 

[mcintyre210]

Yes the annual totals are on to the penny for each column.  Only difference is Column C has an extra Premium Tax Credit entry which is causing the individual to owe $350 in taxes.  If I leave it off, then no tax owed.  If I enter values into Column A & B, also no tax owed.   However,  Turbo Tax is not allowing me to move forward if entered as is.  

[MarilynG1]

When entering your 1095-A, don't enter any 0's.  Leave those fields blank.  Only enter fields that actually have amounts in them.

If you using TurboTax Desktop, in FORMS mode, you can look at the calculations for the Premium Tax Credit on Form 8962.

For TurboTax Online, you would need to pay first to be able to review all your forms and worksheets.

Here's more info on How to Enter Form 1095-A.

If you think your Form 1095-A may be incorrect, can contact the Marketplace.

@mcintyre210 

[mcintyre210]

Doesn't work.  TT gives the following error in red letters if left blank: "Please enter an amount.  Must be greater than zero."

[DawnC]

Don't enter any zeros.  Just amount in the fields that show amounts on your 1095-A.  Advanced Premium Tax Credit calculation is based on a comparison of the Monthly Premium Amount you pay and the Monthly Premium Amount of the Second-Lowest Cost Silver Plan.  Make sure to include all premiums paid by the due date of the return, even if your 1095-A shows a -0- as the enrollment premium for that month.

For each month you had insurance, make sure you do not input $0 in Column B.   Enter all amounts paid by the due date of the return, even if Form 1095-A shows a -0- as the enrollment premium for that month.  If your 1095-A reflects $0, reach out to your marketplace provider to find out what the Second-Lowest Cost Silver Plan amount was.

You may also find this information using the Department of Health and Human Services tax tool. 

When you enroll in coverage and request financial assistance, the Health Insurance Marketplace will estimate the amount of the premium tax credit you will be allowed for the year of coverage. To make this estimate, the Marketplace uses information you provide about:

• Your family composition
• Your household income
• Whether those you are enrolling are eligible for other non-Marketplace coverage

If the premium tax credit computed on your return is more than the advance credit payments made on your behalf during the year, the difference will increase your refund or lower the amount of tax you owe. This will be reported on Form 1040, Schedule 3.

[mcintyre210]

Are you saying it's ok to enter numbers in TT for IRS Form 8962 that are not on the official 1095-A ?  Because the last premium paid was for July; however, there is a 0.00 in Column A & B for July.  Every month before that reported:

Column A $436.96,

Column B $395.40 

Column C $396.00. 

However, this particular 1095-A has 0.00 in A & B but a Premium Tax Credit of $396 Column C (which makes no sense - isn't that credit partly based on information reported in A&B?).  This all happened in July when auto pay stopped.   

[DianeW777]

This may work for you since all months are not the same. If everyone in the coverage family is ineligible for any given month then the SLCSP is zero for those months.   However, in TurboTax, something greater than zero is needed for the calculations.  

Enter $1 in column B for SLCSP for months everyone covered was ineligible.   If some in your coverage family were eligible but some were not, then use HealthCare.gov/Tax-Tool/ to figure out the SLCSP for those months. 

You are responsible for entering the correct 1095A column B SLCSP.  Pub. 974 states,  "If you had a change in circumstances during (the tax year) that you did not report to the Marketplace, the SLCSP premium reported on Form 1095-A in Part III, column B, may be wrong. In either case, you must determine your correct applicable SLCSP premium. You do not have to request a corrected Form 1095-A from the Marketplace." 

Please update here if you need further assistance.

@mcintyre210 

[mcintyre210]

I'll give it a try.  It still makes no sense that a "Premium Tax Credit" was given on a month where no policy premium payment was received.    We know the SLCSP would have been the same.  I'll call the Market Place 800#, this seems wrong and we will find a good correction.

Not only did the auto pay fail and no one from Marketplace notified the individual - they unknowingly went 5 more months with out coverage due to non payment with zero correspondence about the issue which wasn't discovered until open enrollment.  Unbelievable, and now they may now owe tax.  Thanks for your help.

[mcintyre210]

@DianeW777  didn't realize I have to "@" you even if I hit Reply to your specific  comment.  You'd think that would be automatic.

[mcintyre210]

@DianneW777 I entered the SLCSP as you suggested and Turbotax is showing it as an error because there is no value in Column A, and if I hit continue, it's warning me that the risk for Audit is now high.

For the month in question, no actual premium was received, but there was still health coverage and that is why there is still a Premium Credit showing up, but 0.00 in Column A & B. 

Thoughts?