1095-A, Federal Refund Calculation Issue

[iamauntbear]

I received a 1095-A that had correct monthly premiums in column A, but only 0.00 in both columns B and C. Used the HealthCare.gov tax tool to find the SLCSP for column B and entered it, leaving column C with 0.00 since I didn't received the premium tax credit. After inputting that data my federal refund skyrocketed to about $10,000 when normally it's about $1,500. This can't be right and I don't want to file it this way as I don't want IRS trouble. What do I need to do to correct this?

[LeticiaF1]

When you apply every year for your insurance, you estimate what your income will be and what you pay for the insurance is based on the estimate.  When you file your return and you include your Form 1095-A, you reconcile the amounts that you paid with what you should have paid based on your actual income.  If you paid more during the year then you get a credit and if you paid less then you get an additional tax.  

To make sure that the information is correct, contact the marketplace to make sure that column C is $0.  Also review your entries on your return.  To go back to this section:
 

1. Open or continue your return.
2. Navigate to the 1095-A section:
   • TurboTax Online/Mobile: Go to 1095-A.
   • TurboTax Desktop: Search for 1095-a, then select the Jump to link.

What is the Premium Tax Credit (PTC) and What is Tax Form 8962?

[iamauntbear]

OK, thank you for that info. Question though—I'm retired from the State of Ohio and they give me a "Health Reimbursement Arrangement (HRA)" which is money that goes to reimbursing me for my health care premiums (tax free). Do I enter that somewhere into TurboTax? Seems to me that I shouldn't get the premium tax credit if I'm also getting the State of Ohio HRA.

[amcdmc]

I am having the same issue.  It is very confusing.  I have read lots of posts on the community boards in TurboTax and some contradict each other.  I would like to just override the numbers and either use $0 for all columns including Column A or put Column B $0 with the actual Column A dollars from my 1095-A.  The difference in my rebate would be $150 but if I do what one "expert" said where I subtract the the difference of my HRA and SLCSP amount it's a HUGE difference.

 I don't want to get flagged for an audit because I didn't fill in all columns when I know in fact I don't get both HRA and PTC.  That was already determined in the Marketplace when I signed up for the year.

Who really can guide us and give us a correct answer?

[Vanessa A · Accepted solution]

TurboTax is not currently able to handle this issue in the Do It Yourself software, you can either reach out to a Tax Professional for help with filing your return or you can print and mail the tax return along with a manually calculated form 8962.   In Column (e) Part II rows 1-12 you would need to enter $0 for  the months you are not eligible Premium Tax Credit.  If you are using the desktop version, you can fill it out with numbers overridden in forms mode.  This is feature is not available in the online program.  Either way, it is probably easier to just print out form 8962 and hand write the entries. Do not enter 0's for column A, enter the correct amount on your form. 

I would also suggest attaching a statement explaining that you are not eligible for the Premium tax credit .  The reason for the statement is that there is not a spot on form 8962 to state you are not eligible for the credit for reasons other than numbers which are calculated on the form.  So if you send it into the IRS with 0's in column e of form 8962, then you may end up with a letter back from the IRS telling you they are correcting your form and then they will send you the additional refund. 

This is not so much a TurboTax issue as it is a form issue and the lack of ability on that form to report that you are ineligible for OTHER reasons. 

[iamauntbear]

I already filed Federal and State and both have been accepted, but I now know that I have done this incorrectly. How do I fix this now?

[DoninGA]

@iamauntbear If the return is rejected you can make the necessary changes and e-file again.
If the return is accepted you will have to amend your original tax return. An amended return, Form 1040-X, can only be printed and mailed to the IRS if the original tax return was not e-filed. The IRS will take up to 20 weeks or longer to process an amended tax return.

The Form 1040-X for amending a 2025 federal tax return is estimated to be available in TurboTax on 03/04/2026

Before starting to amend the tax return, wait for the tax refund to be received or the taxes due to be paid and processed by the IRS.

See this TurboTax support FAQ for amending a current year tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-federal-tax-return-curr...

[iamauntbear]

Thank you for the response. You wrote, “An amended return, Form 1040-X, can only be printed and mailed to the IRS if the original tax return was not e-filed.” I did e-file and as suggested by another expert I will need to attach a statement explaining that I am not eligible for the Premium Tax Credit. So I do need to snail-mail the amended return. Am I okay to do that?

[DoninGA]

@iamauntbear When completing the Form 1040-X you will be asked to provide an explanation of whey the tax return is being amended.  This explanation will be e-filed along with the Form 1040-X.