The IRS sent me a letter today asking for a copy of Form 1095A, which I have available and they also want a completed Form 8962, what is this about and what do I need to

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Sometimes even when your return is accepted, the IRS may need more information to complete your return. If you purchased health insurance in 2016 through Healthcare.gov or your state’s Health Insurance Marketplace, you may qualify for a tax credit based on your income. Form 8962, Premium Tax Credit, is used to determine the amount of your Premium Tax Credit.

If your return has already been efiled and accepted and it was sent in without this information, the IRS is looking for this in order to finish processing your return. You can go through the steps to amending your return in order to generate the form after the fact.

HOW TO AMEND YOUR RETURN

  • Login to your TurboTax online account 
  • In the 2016 Tax Year section, click Amend (change) return
    • Note: If you see an orange Take me to my return button, you can't amend because you haven't filed yet. Just click or tap that button to open your return and make your changes.
  • In the pop-up, click Amend using TurboTax Online
  • Click Continue on the We'll help you change (amend) your return screen.
  • Follow the on-screen directions to amend your return.

HOW TO ENTER HEALTHCARE INFORMATION (FORM 1095-A) 

  1. Select the Health Insurance section in the Federal Taxes tab.
  2. When asked if you had health insurance in 2016, select the option that applies to you, and Continue.
  3. When asked about being enrolled in any of these less common plans in 2016, select Yes.
  4. On the What type of plan were you enrolled in? screen, select Obamacare plan (1095-A), and then Continue.
  5. Follow the prompts to enter your 1095-A.

If you purchased health insurance in 2016 through Healthcare.gov or your state’s Health Insurance Marketplace, you may qualify for a tax credit based on your income. Form 8962, Premium Tax Credit, is used to determine the amount of your Premium Tax Credit.

When you enrolled for your health coverage on the marketplace—if you qualified for the Premium Tax Credit— you had two options for receiving it:

  • Take the credit when you file your return.
  • Take some or all of an estimated credit amount during the year as an Advance Premium Tax Credit (APTC). The Marketplace sent the APTC directly to your insurance company, so you paid less each month.

Regardless of which choice you made, when you enter the information from your 1095-A, we’ll calculate your Premium Tax Credit and prepare Form 8962 for you to file with your tax return.

Why would I have to pay some of the credit back?

If you received the Premium Tax Credit as a monthly advance (APTC) to reduce your healthcare premiums, the credit amount was an estimate. It was based on your 2016 estimated income.

If your income for 2016 was more than you estimated, you may have to pay back some of the credit.

Why would I get more money back?

If you received the Premium Tax Credit as a monthly advance (APTC) to reduce your healthcare premiums, and your income for 2016 was less than you estimated, you may receive an additional amount.

Or, if you didn’t take the monthly advance credit, and you qualify for it, you will get the entire credit on your 2016 tax return.

Follow this link to get more information on the Premium Tax Credit.


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