Question

Both employer insurance and Marketplace tax credit one month

Forum|Forum|5 years ago
May 17, 2021
1 reply
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My employer notified me of eligibility for employer insurance after the deadline to cancel my Marketplace insurance in January. I ended up having both employer insurance and Marketplace insurance in January with a premium tax credit. I know there has to be some way I'm to indicate this on my tax return but I can't figure out how.

The 1095-A shows the premium tax credit with Marketplace insurance and is entered. All I received from my employer was a 1095-C which doesn't get entered into the tax form. How do I include this in my tax return?

TurboTax Home & Biz Windows

hbl3973

Employee

dwigginsl,

Good question. IRS publication 974 states the following:

MEC eligibility when Marketplace does not discontinue APTC.

If an individual in your tax family is enrolled in a qualified health plan for which APTC was made and the individual is or will soon become eligible for other MEC, you must notify the Marketplace about the other MEC and that the APTC for the individual’s coverage should be discontinued. If the Marketplace does not discontinue APTC for the first calendar month beginning after the month you notify the Marketplace, the individual is treated as eligible for the other MEC no earlier than the first day of the second calendar month beginning after the first month the individual may enroll in the other MEC.

Reading this closely, I would deem it as saying you do get the premium credit for January and do not have to adjust your tax return.

D

dwigginslAuthor

Thank you for your input. I read that as I wasn't eligible for the employer coverage until the next month (ie February). I don't know what else I can do about it though.