1095-A Issues

[lotus798]

I was covered under my mother's 1095-A form for 9 months in 2023, but she paid 100%. When I put in 0%, it said I owed the limit of $350. We together made less than what she had estimated for the year. Someone from TurboTax told me to just remove it because I didn't pay for any of it and would be listed under my mom, but now my return has been rejected for not including the 1095-A. I already doled out $130 for TurboTax Deluxe because I needed to file my 1098-T. Can someone please help with this? I do not have another $350 to spare and I am at my wit's end with this website.  

[TomK2023]

If you're listed as a dependent on your parents’ tax return, you won't have any health insurance questions to answer on your own return. TurboTax will tell you Since someone is claiming you on their 2023 taxes, you don't have to complete Health Insurance.

In your Personal Info section, did you indicate that you can be claimed as a dependent on someone else's return.  See image below.

Please see this TurboTax FAQ for other possible 1095-A scenarios: I'm on my parents' 1095-A form. What do I do on my return?

[lotus798]

Thank you for the reply! I am not listed as a dependent on her taxes, just under her health insurance, so I did not say she could claim me. 

[TomK2023]

Did you receive your own 1095-A? 

@lotus798 

[lotus798]

No, I never received a separate copy of the 1095-A addressed to me. 

[MayaD]

If you're on your parents' Form 1095-A, but aren't filing as their dependent, select your situation from the TurboTax Help link for instructions on how to report the information on your return:

I'm on my parents' 1095-A form. What do I do on my return?

[lotus798]

Thank you for the reply. I followed the steps on the instructions, but my problem is that it's telling me I need to pay $350. If we made less than the estimated amount, why would I owe money? If I leave the boxes blank instead of putting 0s, it adds to my federal refund. My mom and I don't want to get in trouble for both getting money back, though. I just don't want to owe money. 

[DawnC]

You can allocate the policy in whatever way you like, as long as it adds up to 100%.   You can allocate the full amount to her tax return and zero to yours, or vice versa.   Likewise, you can split it 50/50 or any other combination that adds up to 100%.    Try different combinations to find the best tax outcome.  

If you had a Marketplace plan and used the premium tax credit to lower your monthly payment, you’ll have to “reconcile” when you file your federal taxes. This means you’ll compare:

• The amount of the premium tax credit you used during the year. (This was paid directly to your health plan, so your monthly payment was lower.)
• The premium tax credit you actually qualify for based on your final income for the year.

Any difference between the two figures will affect your refund or tax owed.   The advance credit amounts in Column C are based on your estimates of total income, family size and zip code.  If the actual income, family size, or zip code is different when you file, TurboTax will reconcile your 1095-A on From 8962.  

Advanced Premium Tax Credit calculation is based on a comparison of the Monthly Premium Amount you pay and the Monthly Premium Amount of 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.

[lotus798]

I appreciate the response. Whenever we do anything other than my mom allocating 100%, we BOTH have to pay $350, even if it's 90 and 10. Could it be that I have a different zip code? I have moved since the beginning of the year. 

[Vanessa A]

The premium tax credit is based on your income and family size compared to the Federal Poverty Level. So even if you made less combined, individually, your threshold is lower.  For one person the poverty line is $15,060.  For 2 people it is $20,440.  If you look at line 7 of your form 8962, you will see a percentage there.  You can use that percentage and compare it to this table.  This number is then multipled by your MAGI on line 3 of form 8962 to determine how much you should actually contribute to your premiums.  This amount will then show on line 8a.  This number is not going to change based on the portion you received in the credit.  The only thing that will change that number is a change in income.  Then add to that, if your income is under 400% of the FPL, your repayment is limited to an amount between $350 and $1,500.

So, if your income is at 200% of the federal poverty level, then your repayment limitation is $350.  So, whether you should pay back $350 or $1,000, it will stay at $350 based on your percentage of income compared to the poverty level.  This is why whenever you change the numbers, your repayment amount is staying the same.

How to Reconcile Your Premium Tax CreditWhat is the Premium Tax Credit (PTC) and What is Tax Form 8962?

[lotus798]

@Vanessa A   Thank you for that info. Does it matter if both of us, individually, made below the FPL? I personally only made around $7000 for the entire year.

[Vanessa A]

If your income was only $7,000, then you are below the FPL which means you should not have to repay any of the tax credit.  Did you have any other type of income?  

It sounds like there is something erroneously entered on your return.

Is there a reason you want to split this instead of your mom claiming the entire premiums?

[lotus798]

@Vanessa A   Interesting. We were planning on her putting 100% and me 0%. Splitting it was just an experiment to see if it changed what we owed. We can't figure out what is entered wrong, though. 

[Vanessa A]

You would need to look at form 8962 in your return to see what is changing or not changing.  As like I said, with income of $7,000 you should not have any type of repayment.  However, it is not a good idea to "experiment"  too much when you are in your real return.  Sometimes forms get stuck and things get duplicated.  

I would suggest for now going back to just 0% and 100% if that is the way you plan on filing. 

[lotus798]

@Vanessa A   forgot to mention that no, I did not have any other types of income.