Must I choose employer coverage instead of Obamacare coverage?

[markpeter]

I chose to NOT accept the insurance offered by my previous employer because I would only need it for three months of 2016, and would have to start over with deductibles, etc.(due to retiring in March 2016), AND it would be cheaper than what the Obamacare premiums would  be.  However, I have heard that I was not eligible for any APTC for the months I could have had my employers insurance.  Is this true? 

[markpeter]

If so, how do I change my 1095-C to reflect the three months I'm not eligible for?

[TaxGuyBill]

So you mean your 1095-A from the Marketplace?

If so, enter ZERO (use the number, not the word) when you enter the SLCSP (column B) of the 1095-A for those months.  TurboTax will flag it as an error, but I've heard you can ignore the error and it will still let you file your tax return.

[markpeter]

Will this flag the IRS if it shows up as an error?

[TaxGuyBill]

No, it just warns TurboTax users that they may have forgotten to enter it.

If you were to enter anything but zero, it would flag the IRS about it because your 1095-C (from your employer) shows them your employer offered you insurance.

[TaxGuyBill · Accepted solution]

Yes, that is correct.  You do not qualify for the Premium Tax Credit for any month that your employer offers 'affordable' health insurance (almost all employer insurance meets the 'affordable' criteria).