Hello. I owe money because of my 1095a. I got employer insurance. Why do I owe money if I called my state insurer to cancel my plan? Should I have contacted the irs too?

[Producer388]

Researching this online led me to learn that I should have contacted the marketplace to update them on my insurance changes, but didn't I do that when I canceled my subsidized insurance before taking my employer insurance? Should I have contacted someone else too?

[JohnB5677]

Please confirm that you do not have any open accounts in the Marketplace.

No, you do not need to contact the IRS.  

1. You can use the phone number by state at The Health Insurance Marketplace.
2. The list is half way down on the page.
3. To clear a 1095-A in TurboTax, you can follow these steps

It may be that you had it in the past and it carried over.

To clear a 1095-A in TurboTax, you can follow these steps

1. Select Tax Tools
2. On the drop-down select Tools
3. There will be 4 green boxes
4. Select Topics Search
5. Type 1095-A
6. The question will come up Did you receive Form 1095-A for your health insurance plan?
7. Answer Yes
8. Continue to the form
9. Delete it using the trash can
10. Repeat the process
11. When you get to Did you receive Form 1095-A for your health insurance plan?
12. Answer No

[Producer388]

•  live in Massachusetts and the health connector is who I contacted to cancel my insurance plan before getting employer insurance. I do not have a plan with them anymore and confirmed it when I logged in to their website yesterday to get my 1095a. I owe money on my taxes because of my 1095a. Why is this if I canceled my state insurance?

[Vanessa A]

When did you cancel the plan?  If you had insurance through the Health Connector and received an Advanced Premium Tax Credit, during the time you had insurance, it is possible that you would have to fully repay all of the credit when you file your taxes due to your income for the entire year being more than you estimated it to be when you signed up for the insurance.  So even if you only had insurance for January and February, if your income for the year says you didn't qualify for the Advanced Credit, then you would have to pay it back which would cause you to owe the IRS. 

When you enroll in a Marketplace plan you are asked for your estimated income for the year.  This is what they base your Advanced Premium Tax Credit off of.  If your household income is more than 400% of the Federal Poverty Level, then you will be required to repay the entire amount of premiums that you received in advanced that you were not eligible for.  If your household income is less than 400% of the Federal poverty level, then you may have to pay back some but not necessarily all of the credit you were not eligible for that you received. 

[Producer388]

• Thanks for the answer. I canceled my plan the month I changed jobs so March. So even though I canceled that month and I had another job where I wasn't on the tax credit I still have to repay what I used? That's what you're saying then?

[Vanessa A]

Correct.  The only thing that matters in the end is your total income for the year.  Since your total income made you ineligible for the credit, you will have to repay what you used. 

[Producer388]

Okay. Thank you for your response