APTC

[lswpubrw]

In December 2019 I filed for an ADA health insurance plan and was accepted.  I paid the premiums for 12 months out of pocket.  I'm self employed and my income at the end of the year was a tax loss.  The income requirement for the APTC requires me to have made >~$14,000 so TurboTax is not allowing the credit.  I checked the IRS web site and they say as long as I was accepted (based on 2019 income) when I applied in December 2019 I am eligible for the APTC.  Problem how to I get this into TurboTax????

[MarilynG1]

If you did not have a Federal or State Marketplace insurance plan, you would not be eligible for a Premium Tax Credit, since you paid your premiums 'out of pocket' and did not receive premium assistance.

Click this link for more info on the  Premium Tax Credit. 

If your ADA plan is considered a 'marketplace' plan, you would receive a 1095-A to report this.

If this applies to you, click this link for info on How to Enter 1095-A. 

This link gives info on claiming the Self Employed Health Insurance.

[lswpubrw]

I did have a market place plan for NY,  I just elected to not take the premium credit "upfront".  I entered the 1095-A info and get left without a credit.  I'm assuming it's because my income for the year, which I did not know until the end of the year, was less than the minimum. 

[DawnC]

In general, individuals and families may be eligible for the premium tax credit if their household income for the year is at least 100 percent but no more than 400 percent of the federal poverty line for their family size.   Did you have any other income reported?   

For purposes of the premium tax credit, your household income is your modified adjusted gross income plus that of every other member of your family who is required to file a federal income tax return.

[lswpubrw]

Yes I'm now aware of the 100% minimum, but the IRS has a FAQ  page question #30 where they state If your determined to be ineligible for Medicaid which I was when I applied in December and enrolled in qualified plan then you can get the APTC.  My problem was that by the end of the year my AGI below the100% for 2020 although I was OK for 2019 which was the number used on the application in December 2019.  The FAQ says you apply for the months you were qualified.  I just don't see how to do that in TurboTax.

[BillM223]

In my test cases that approximate your situation, TurboTax is giving the PTC back to the taxpayer, so obviously there is something different between my test and your actual return.

Can I ask you a favor?

Send us your tax file
We'd like to take a deeper look at your specific situation. Please attach screenshots, detailed instructions on where you are in the TurboTax Program and a token number. (This token number gives us your tax file with all your personal information removed)

TurboTax Online:  
Click Tax Tools in the menu to the left.
Click Tools, and then
Click Share my file with Agent.
A pop-up message will appear. Click OK to send the sanitized diagnostic copy to us.
Provide the token number that is generated onto this thread.

TurboTax Desktop:
Select Online menu if the customer is using Windows. Select “Help” if using a Mac.
Select Send Tax File to Agent.
A pop-up message will appear, and the customer will select, Send. If using Mac "Send Tax File to TurboTax Agent" 
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Another message will appear. Provide the token number that is generated onto this thread.

At the end of the post, please add @ BillM223 (without the space in between) so I will be notified. Thanks.

[lswpubrw]

We were enrolled in a state marketplace plan, I just didn't apply for premium assistance.

[lswpubrw]

My 23 year old son was on the plan with us in 2020 BUT he filed a separate individual tax return for 2020.  When I enter his income in the 8962 I get an error message when reviewing the return saying since I'm not taking him as a dependent on my TAX RETURN I can't use his income in the 8962.  I didn't think that was correct.  I though "dependent" status for health care was independent of "dependent" status on my tax return.  He is listed on the 1095-A.

[MaryM428]

You asked about whether your son's income will be included on Form 8962.  It will not be included.  On Form 8962 your tax family is you and your dependents.  The household income is the total of your modified AGI and your dependent's AGI.  Your son's income will not be include in 8962, even if he is a member of your household, because he is filing his own return.

Enter your 1095-A using the TurboTax interview to create the Form 8962.

Follow these steps:

• Federal
• Medical 
• 1095A
• Yes to received a 1095-A
• Fill in the information exactly as it appears on the 1095-A
• Click the box for I shared this policy with another taxpayer who is not on my taxes
• Enter your son's social security number
• You and your son need to agree on the percentage of the premium, SLCSP, and Advanced Payment of PTC
• The rule is that you both must agree to the percentages and the percentages much add up to 100%

TurboTax will calculate your premium tax credit and create your form 8962.  Your son's income will not be included on the 8962 because he is not a dependent on your return.

[edited 3/5/2021 | 12:30 pm PST]