Affordable Care Act form 1095-A

[fromcr]

shared a Marketplace policy with more than one person,  need help allocating policy amounts

[DeanM15 · Accepted solution]

You can allocate policy amounts any way you like, as long as they add up to 100 percent on all the tax returns. 

You need to be in agreement with the people you shared the policy with. You can share the policy 0/100, 50/50, 60/40 or any amount for a two-person policy.  You can see more here, starting on page 26.

[twolf]

The issue is - how do you enter more than one other person?

[MaryK1101]

After you enter the 1095-A, there will be a few followup questions, but then you will see the summary- Look for Add Another.  See below.

@twolf

[fromcr]

So I add the same 1095-A form again for each of my 2 children that are not my dependents? I don't see how that can be done other than ballon my  tax liability 3 fold, my situation is one child made $4700 and the other $4330 so both don't qualify as my dependents any more, also one already filed her taxes without doing the form 1095 and trying to do an amendment keeps saying that she is still my dependent and tells me to delete the form.

Can I put the percentages in my return as follows   66    66   33?

[VictoriaD75 · Accepted solution]

Be sure to indicate that the policy is shared with individuals who are not on your return. You can choose any percentage you want, but the total allocation must not be greater than 100%. Therefore, you suggested percentages would not be allowed.

[JbradlayA]

My daughter was had insurance the ACA for 4 months in 2020 because she started the year with a low paying job.  In April she got a better paying job ($32,000/year) and had private insurance for the last 8 months of the year.  She is single, has no dependents and takes the standard deduction.

When I do her return it appears that she now has to pay a $500 tax  based on the 4 months of ACA coverage.  Is that possible or am I missing something?

[MaryM428]

At the beginning of the year, you estimate what your income will be for the year. The state marketplace estimates how much Premium Tax Credit needs to be paid to the insurance company on your behalf to make your health insurance premiums affordable (that's why it's the "Affordable Care Act").

If it turns out that you made more money by the end of the year than you estimated at the beginning of the year, then some or all of that Premium Tax Credit may have to be paid back.

If this is the case, please look at line 2 on Schedule 2 (1040) because the amount to be paid back is shown here.

Sign into TurboTax on a browser

Go to Tax Tools, Tools, View Tax Summary

Then in the left panel, you will see Preview my 1040

Search for Schedule 2 Line 2 to see the amount she will be paying back

[luannewolf]

This also applies to unemployment - I received quite a bit of unemployment in 2020 and now I have to pay back quite a bit of my PTC.

[LenaH]

If you did not pay taxes on your unemployment during the year, you will have to pay taxes on it when you complete your tax return. The IRS considers unemployment income as taxable income, as do most states. 

TurboTax has a great tool that can help you withhold the correct amount of tax on your income sources. Please see Tax Bracket Calculator for a better estimate on what should be withheld. 

For more information, please see Do I have to pay taxes on unemployment?

@luannewolf

[luannewolf]

I wasn't talking about income taxes due on unemployment - I was talking about how the receipt of unemployment (not reported to the marketplace as an increase in income) can affect your PTC.

[ThomasM125]

@luannewolf is correct, like wage income, unemployment compensation will increase your income for premium tax credit purposes, which could result in you having to pay back some of your premium tax credit.