1095-a

[Torri123]

So I’m trying to do my taxes and I have a question. We had healthcare through the marketplace until May because we moved out of state. Now I’m owing $1300 because we made too much money but do we really have to pay that when I canceled it and we moved out of state? 

[HelenC12]

Yes, you have to pay for the portion of the time that you were insured by the Marketplace Health plan. 

• You may have canceled your Marketplace health plan but you were insured through May and you have to pay for it. It isn't free. 
• You also chose to take the subsidy each month and reconcile at tax time.
• Since your income is higher than what you reported when you filled out the Marketplace heath plan application, the subsidy you received each of the five months was more than you were eligible for so you have to pay it all back or at least a portion of it. 

For additional information, see What is the Premium Tax Credit (PTC) and What is Tax Form 8962?

[Torri123]

And that’s true even if I moved to a completely different state?

[TeresaM]

Yes, because the Marketplace health insurance coverage Premium Tax Credit is based upon your federal income for the entire year, so even if you change states, it will still use the same income for the calculation.

Note: There is an alternative calculation allowed if you became married in 2022 and are filing jointly.