1095-a reduces my refund by around $900.. why is this?

Forum|Forum|6 years ago
June 6, 2019
4 replies
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Covered under affordable care act through market place. Policy issuer is BCBS.

Info:

Part 3

Box A: 311.29 | Box B: 335.16 | Box C: 311.29

Had this policy from January until June then moved over to my new jobs insurance. Not sure why this is wanting me to pay anything back?

TurboTax Free Edition Online

Best answer by ErnieS0

Your refund went down because you are repaying the healthcare subsidy. You received partially subsidized health insurance based on your projected annual income when you applied for medical insurance through the healthcare marketplace.

Getting a better job means you made more money than your expected. Had you known, you would have received a smaller subsidy or perhaps none at all.

Form 8962 uses your annual income.

@drbob123

HelenC12

The income you entered on the Healthcare.gov application was lower than the actual income reported on your income tax return. Taking the Premium Tax Credit as a monthly subsidy acts like a discount and reduces what you pay monthly for coverage.

However, if your family’s situation changes during the year, the premium tax credit you qualify for also changes. If you forget to update your original estimates, you may need to pay back some or all of your credit on your tax return.

Claiming the Premium Tax Credit when you file your tax return, instead of taking a monthly subsidy:

Because the credit is calculated with your actual 2017 tax information instead of estimates, you don’t carry the risk of having to pay it back.
However, you won’t get a discount on your monthly health insurance bill. Instead, you’ll have to wait until you file your taxes to get your credit.

Related Information:

What is the Premium Tax Credit?

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kimberlyjane11

This doesn't make sense though... When I got Covered CA I estimated how much I was making. When I got a new job with better pay, I canceled my policy with them (or whatever you call it). How was I suppose to know I was going to get a better paying job? BUT when I did, I called covered CA and cancelled because I knew I was making more. So why am I penalized for being on Covered CA when I needed it and made almost nothing, and then finding a better job and cancelling? I didn't stay on with Covered CA. I only made more money the last few months of the year and I had cancelled with CoveredCA. THIS MAKES NO SENSE!

drbob123

Wow, I'm in the same situation in Florida. Had healthcare marketplace coverage earlier in the year, got a better paying job, cancelled my healthcare, and now I'm getting punished for the money I made AFTER? My entire tax return just went out the window and now I OWE taxes instead. Absolutely ridiculous.

Critter-3

Sorry but that is how the PTC rules were written.

myhell01

Mine was reduced by 8,000 dollars! I had the coverage for 9 months and never even used it. Very shady of our government if you ask me.

Candygiirl908

It was done to me too, I called the market place there’s nothing that can be done. It’s such a scam from the government. I applied for insurance in December 2022 for January 2023, not knowing I’d have a change of income in April! I canceled the insurance from the marketplace because the job gives insurance and because what I claimed my projected yearly income doesn’t match what I made, regardless of me not even using market place for 7 months and canceling the insurance when there was a change. Now they took out $2000 from my taxes which is the child income tax credit! A huge rip off that needs to be changed.