Form 8962-American Rescue Plan Act

[Sam Khan]

Is there a special rule this year for Form 8962? Last year American Rescue Plan Act suspended repayment of excess Advance Premium Tax Credit for 2020. What about if people don't pay or had Market place Health insurance for only couple of months and now they have insurance through the employer? 

[DoninGA]

No, there is no special rule for the Premium Tax Credit reported on a Form 8962 for tax year 2021.

If you had Marketplace insurance at any time in 2021 you will receive a Form 1095-A which has to be reported on your federal tax return.

To enter your Form 1095-A -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Scroll down to Medical
• On Affordable Care Act (Form 1095-A), click the start or update button

Or enter 1095-a in the Search box located in the upper right of the program screen. Click on Jump to 1095-a

[Sam Khan]

Thank you for the reply, my friend is asking what about if he doesn't report? He has insurance through his employer. 

[DoninGA]

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@Sam Khan wrote:

Thank you for the reply, my friend is asking what about if he doesn't report? He has insurance through his employer. 

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If he has Marketplace insurance at any time in 2021 and does not report that on his 2021 tax return then he can expect to receive a letter from the IRS requesting that he report the insurance he received.  The IRS receives a copy of the Form 1095-A from the Marketplace insurance provider and requires that it be reported on a tax return.

Any employer provided health insurance where he would receive either a Form 1095-B or Form 1095-C is not reported on a tax return.