Tax Year Prior to 2020: ACA Tax Credit / 1095-A in the State of Maryland

[blastairbender55]

Hello Out there!

I am trying to prepare for the upcoming 2019 tax season and I have a question regarding ACA. In 2017, I signed for a qualifed healthcare plan under the Silver plan with financial assistance meaning an individual would receive tax subidies/tax credits. Then, March 2018, I was let go from my temp agency job. I did not file for unemployment as I cannot claim those. I also did not inform my US state's healthcare marketplace within 30 days about a change in my income. However, I had money in my savings to pay for the ACA health insurance bills for April, May, June, July, August, September, October, November, and December as I did not and still currently at this time not working. I have paid all of the bills on time and there has been no lapse gaps in coverage. When it came time to sign up for 2019 ACA health insurance through my US state' marketplace in November 2018, I updated my information and was qualified and enrolled in Medicaid. The state's health insurance marketplace notified the ACA health insurance provider that my qualifed health insurance plan was terminated by November 30, 2018 as I have switched and enrolled in Medicaid.

On December 3, 2018, the ACA health insurance provided returned/refunded the amount I paid for the upcoming December bill. My medicaid coverage will start in Mid-December. I am based in the State of Maryland.

My question is as follows:

1. Do I have to pay back the tax credit/tax subidies for the year 2018 when filing my taxes in 2019 even though my income was 0 in March 2018 and is currently at zero?
2. What will be reflected in the 1095-A form ?
3. Will be 1095-B form be required since Medicaid will kick in in Mid-December 2018?
4. Anything else I should know about? 

Thank you.

[KarenL]

Below are the responses to your questions. Hope it helps!

1. You should not have to pay back the premium credits you were provided if your income was $0. 
2. Your 1095-A will show the cost of the plan and your premium credit amounts. 
3. Yes, you should also receive a 1095-B form for the one month you are on Medicaid.
4. It sounds like you have done some research already.  You will have to file a tax return simply due to the fact that you will receive a Form 1095-A - even if you have no income.

[blastairbender55]

So, will I owe the IRS some money this year or simply receive another tax refund. What do I have to put down for Form 8962 since 1095-A is required for that? What about 1095-B?

[KarenL]

Unfortunately, I can't tell you if you owe or receive a refund because that would require me to calculate your tax return. You will have to wait until you receive your forms 1095-A and 1095-B to know what to enter for that form.

[blastairbender55]

This year or early next year, I will receive 1 W-2 form, a 1095-A and possibly a 1095-B. Can I still use TurboTax Absolute Zero / TurboTax Free ?

If not, which other version of TurboTax should I use?

[KarenL]

Since I don't know your entire tax situation, I really can't tell you for sure.  However, if your situation requires a higher version, you will be prompted inside the software to go to the version that is needed.  You can read about all of the online products at this link TurboTax Online Products.