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HRA and premuim tax credit

Forum|Forum|3 years ago
January 30, 2023
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I'm retired and my employer provides me with an HRA which covers my monthly insurance premium. When I signed up for this I had to elect the HRA or the premium tax credit and was told I can't get both. "If the HRA is considered “affordable,” and you accept the HRA, you aren’t eligible for the premium tax credit for your Marketplace coverage." But now when I enter the information from my 1095-A into turbotax it is calculating a big refund based giving me the premium tax credit. Do I qualify for this? I don't see a way of reporting that it was paid for by my HRA.

Best answer by DaveF1006

No, according to this bulletin from the marketplace, you should not be receiving a premium tax credit. According to Turbo Tax agent ThomasM125 in his post, "do not report the 1095A unless you received advance premium tax credits or qualify for a premium tax credit, which you don't". Delete the 1095A because this does not need to be reported.

DaveF1006Answer

No, according to this bulletin from the marketplace, you should not be receiving a premium tax credit. According to Turbo Tax agent ThomasM125 in his post, "do not report the 1095A unless you received advance premium tax credits or qualify for a premium tax credit, which you don't". Delete the 1095A because this does not need to be reported.

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R

RMBeachy42Author

Thanks, I deleted the forms but now TURBO TAX says if I don't report my 1095A and I have an Affordable Act Insurance Plan the IRA will reject my return. Should I just ignore this and try to submit without reporting the 1095A?

DaveF1006

Yes, perhaps a qualifying question that Turbo Tax should ask if you have an HRA. If this was a qualifying question in the return, then it would exclude the premium tax credit (PTC). Your situation is that if you enter the 1095A information in the return, it will give you a premium tax credit you don't deserve and Turbo Tax does not address the fact you have an HRA. Based on this, here is my advice.

Indicate in Turbo Tax you did not receive a 1095A. You will receive a letter shortly from the IRS asking why you did not submit your 1095 A in your return.
At this point, the IRS will ask you to submit your 1095A and may ask for an 8962. At this point, you will send in the 1095A plus a statement alluding to the fact you have an HRA and the marketplace will not allow you to claim a premium tax credit. Also, Turbo Tax does not address this in their program. Also state that you did not include an 8962 because the PTC is not allowed.