Where do I enter information on ICHRA

[jimmys1014]

I received a 1095-A and have entered that information but my company has ICHRA and I cannot see where to put that in TurboTax to make sure the PTC is calculated correctly.

[SharonD007]

Is ICHRA your health insurance from your employer? Did you receive a 1095-B or 1095-C?  Those forms aren't entered on your tax return. 

Refer to the TurboTax Help article Do I need to enter my 1095-B and 1095-C?

[jimmys1014]

ICHRA stands for Individual Coverage Health Reimbursement Arrangement.  I received a 1095-A.  When that is entered it shows I qualify for a Premium Tax Credit.  However, through ICHRA my employer is funding my MarketPlace coverage.  According to this site q22 https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premiu..., I would assume I need to still enter the 1095-A info in TurboTax but also enter information that shows that the employer is covering the premium through ICHRA.  I see no place to enter this.  I would love to get this credit, but do not believe it is actually allowed.

[BrittanyS]

No, you can not take the Premium tax cred that if you receive ICHRA then you are not eligible for the Premium Tax Credit.  However, you would still enter your 1095-A in TurboTax and then enter the amount of your employer reimbursements under the deductions and credits medical section in TurboTax.  To enter follow these steps:

1. In the search box type HSA and select jump to HSA section
2. Answer the questions through the HSA section

• ICHRA and the Premium Tax Credit

@jimmys1014 

[jimmys1014]

@BrittanyS  Thanks for the information, however, I am not seeing under the HSA wizard in Turbotax where to enter Employer Reimbursements.    The only question that seems close is "Did your employer tell you about any other contributions?"   If I select Yes here,  I have the option to enter:

Employer and payroll contributions made in 2024 for tax year 2023

Employer and payroll contributions made in 2025 for tax year 2024

Employer and payroll contributions not reported in Box 12 of your W-2

Is it one of these boxes that I would put the amount of premiums the employer paid?  None of these seem correct.

[BillM223 · Accepted solution]

jimmys1014

Your understanding that taxpayers who have an ACA policy, whose premium is paid for by an HRA, is correct.

What we need to do is a workaround to see if we can get the 1095-A into your return (so that it won't be rejected on e-filing), but also don't give you PTC that you don't deserve because of the HRA.

So let's try this. When you check off that you have a 1095-A in TurboTax, the screen will be opened so that you can enter the values month by month. BUT you are not going not enter the values on your 1095-A; you are going to enter these:

January, columns A & B - 1.00 (i.e., $1).

put 0.00 in every other column.

If you can, to save keystrokes, enter 1.00 1.00 0 for January, and then do the copy for every other month (this works in the CD/download version - I haven't tried it with Online).

This should result in 0.00 in every entry except for 1.00 1.00 for January, cols A & B.

When you run TurboTax, the should result in you being awarded no PTC. If you get some PTC, let us know.

Now, we understand that this means that you changed the entries on the 1095-A, and the IRS may notice this and send you a letter noting that your entries were not the same as the copy of the 1095-A that they got, and asking for a 8962 (at least).

If you get such a letter, just write back to the IRS that your ACA premium was paid for by an HRA, so you are not allowed any PTC. You made these entries as a workaround for the tax software that otherwise would have awarded you PTC that you did not deserve.

@jimmys1014