1095-A - Tax Issue

Forum|Forum|4 years ago
February 13, 2022
4 replies
24 views

I am in the process of filing my 2021 taxes.

I got the medical insurance through Health Insurance Marketplace (Mass Connector)

Based on the income guideline, I do not qualify for the Advance Premium Tax Credit

Bur when I add the monthly enrolled premium, the Tax Refund goes up !!

ZoltanB45

Level 9

If you received unemployment in any week of the year, you automatically pass the income test.

Sarora1722Author

Level 2

Yeah I got unemployment for one week in 2020, which was paid in 2021

Though I had health insurance through Mass Connector (2021) , I was not qualified to get any premium discount based on the income.

This (2022) year I have an insurance through employer.

Now I am getting refund when I apply the form 1095-A. Do I need to pay back any of this refunded money ?

RaifH

Level 10

No, you will not have to pay back any of the refunded money. There is a special provision in the American Rescue Plan Act regarding taxpayers who were on marketplace insurance and received unemployment at any time in 2021.

According to the IRS, "If you, or your spouse (if filing a joint return), received, or were approved to receive, unemployment compensation for any week beginning during 2021, the amount of your household income is considered to be no greater than 133% of the federal poverty line for your family size and you are considered to have met the household income requirements for eligibility for a premium tax credit."

The calculation of the Advanced Premium Tax Credit you received for payments to your marketplace insurance provider is reconciled against the tax credit you should have received as if your income for the year was 133% of the federal poverty line. If you are getting money back from that reconciliation, that is yours to keep and will be added to your 2021 return.

@Sarora1722

ZoltanB45

Level 9

Here is a link from the IRs site with the Premium Tax Credit eligibility.

premium tax