1095-A reduced my tax refund.

SleepyM · ‎February 13, 2023

Hi TurboTax Community,

After entering my 1095-A information my tax refund was slashed in half.
To give some context I was unemployed / a student in the beginning of the year and was solo on my medical plan. I got a job in June and cancelled my marketplace insurance once I qualified for my employers insurance.

When I entered my information (1095A) into the system, it slashed my refund in half. Is this normal?

Thanks!

TeresaM · ‎February 13, 2023

When Form 8962 does the calculations for what Premium Tax Credit is allowed, they use the adjusted gross income for the full year. It sounds like you ended up not qualifying for as much as was estimated at the beginning of the year and was already paid out as Advanced Premium Tax Credit,so there was some repayment required.
The only exception for this calculation is a year in which you get married, when there is an alternative calculation available.

This shows the worksheet that does the calculation for adjusted gross income.

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