What if I had the Marketplace insurance for half of the year, and then I got a promotion and had insurance through my work the rest of the year?

[a-tihng22]

My work didn't pay for my insurance for half of the year, so I had to go through the Marketplace. About May, I got a promotion at work and they offered health insurance. So, I have health insurance through them from july on. How do I put this in my taxes? I have a 1095-A and a 1095-B.

[Fern]

You would indicate that you had health insurance all year.  You would also indicate that you had Obamacare/Marketplace insurance.

You only need to enter information for any period of time where you had Obamacare or Marketplace insurance.  You will enter the information from Form 1095 A for this insurance.  You should enter the information only for the months you were covered by an Obamacare or Marketplace insurance policy.

The 1095-B he received is for informational purposes only.  You should keep with your tax papers.  There is no information on the 1095 B that you will put into Turbo Tax.

Form 1095-B will be sent to you if your insurance provides what the Affordable Care Act calls "minimum essential coverage." It is your documentation that you were covered by insurance.

[woodrum77]

question is though; if you had it through the obamacare (health market) most likely you had a tax credit; and just like a-thing22 received promotion (which meant more money) and then insurance through employer and it seems I will be penalized for this factor. there has to be a way not to be penalized as my tax credit would have applied to the half of the year I had obamacare and at that pay rate; I shouldn't be penalized for having earned more pay and then the opportunity to have employer pay for my insurance.

[kjrudkin]

did this get resolved? I have the EXACT same issue.

[secretagent78533]

I'm in the same boat. I would really like to know if there is anyway to not be penalized

[a-tihng22]

I just found out that you'll get penalized if you don't report it to the market place when you RECEIVED the promotion. Even though I made less the first half of the year I still owed over $700 because I didn't report the promotion when I got it. So stupid!

[kjrudkin]

Well I heard you get penalized either way because they calculate it based on your income for the year. I reported mine right away and I still owe!! If anyone knows how to get around this please help!!!

[a-tihng22]

It's stupid- This needs to change. For some of us WE COULDN'T afford it before the promotion. After the promotion we stopped using it because our work paid for it. Don't penalize those who couldn't afford it for however long. Greedy people.

[pineapple425]

Has anyone experienced the reverse of this issue? I had a salaried job Jan.-March. I left and went part time so I was making much less and I used the marketplace for a policy April-Dec. I actually made less money than I estimated for the tax credits but after filing my 1095-A, it says I owe $800 back in tax credits because I made more money than I estimated since it is including my wages from Jan.-March. Can someone help?

[mare7771957]

What forms do you complete?

First of all, the people at the Marketplace, do not tell you anything. I asked them what the salary range was versus the credits so I did not get penalized. They said, oh don't worry, it's a big range. When I did my taxes on Turbo, it came up showing I owed about $8,000 to Federal Tax.  That can not be right.   How can they force this on a single person who made under $48,000, and how is the Marketplace calculating those credits every month. They never explained how it worked.  I am so angry over this and will never use it again. All it does is benefit the government.   I am hoping my tax accountant can figure out how to complete the 8952 form and does the calculations correctly.   So if I took out the insurance in January 2019 and ended it on Oct 1, 2019, the income should only be up to Oct 1st, not the end of year.  

[Kat47]

Yes. I was receiving unemployment and had marketplace insurance from January to the middle of May, which was when I finally found gainful employment. I contacted the healthcare marketplace people and asked them to cancel my insurance. They cancelled my insurance mid-June. They even sent me a refund check shortly after for about $90. Now, I my return was deducted by $1100 because turbo tax says I owe the healthcare marketplace. I am glad that the insurance was available, but I hope I don't ever have to use this assistance again! 

[MarilynG1]

The calculation for the Premium Tax Credit on Form 8962 uses your income from the entire year, so it's not looking at just what you earned while you were on the plan. 

If your total income exceeds what you estimated in your Marketplace application, you may need to repay some of your Advance Premium.

There is a limit to the amount you need to repay, though.  Check the calculations on Form 8962.

Click this link for more info on Premium Tax Credit.