Question

ACA & 1095-C

Forum|Forum|4 years ago
February 15, 2022
1 reply
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My daughter changed job in September, 2021. Her new employer didn't offer her health insurance until November, 2021. Meanwhile, we covered her with our ACA policy from September to December without realizing her employer's insurance offer in November. We paid 100% for the ACA allocation.

My questions are: Do I need to reduce the ACA premium credit for Nov and Dec? If so, how do I go about doing it (i.e. what forms and where to remove her portion of the ACA subsidies)?

(Note: My daughter received a 1095-C from her new employer notifying IRS that she was offered insurance for Nov and Dec).

ColeenD3

Please see this answer from LindaA. Although it is from a previous year, the information still applies.

You'll need to indicate how long you were covered by either plan in 2016 (in your case, all year) and enter information from the Form 1095-A for your marketplace plan.

Go to the Health Insurance section and indicate that you had coverage all year (since you had marketplace coverage for 6 months and employer-sponsored coverage for the other 6 months). Continue through the interview and answer the marketplace questions:

Were you enrolled in any of these less common plans in 2016? Yes
What type of plan were you enrolled in? Obamacare plan (1095-A)
Do you have a 1095-A form to enter for your Obamacare plan? Yes

Next, enter the information from your Form 1095-A (Health Insurance Marketplace Statement), then continue answering the questions in the Health Insurance section. When you're finished, TurboTax will display That's all we need on your 2016 coverage.

Note: You may receive a Form 1095-C for your employer-sponsored coverage, but this form isn't needed to file your tax return. Just be sure to store it with your records.

G

GetzMoolalaAuthor

Thanks for your answer. The complexity comes in when we covered her for 4 months (Sep - Dec, 2021), she was offered insurance from her new employer for Nov and Dec but declined because we covered her during the 2 months.

By declining the coverage from her employer for Nov and Dec, she wouldn't qualify for premium tax credit for these 2 months. As such we need to reimburse IRS for my daughter's portion of the advance payment. My daughter's portion is simple in calculation because we didn't have her from January through August. The difference in premium times 2 would be what we need to reimburse to ACA. The question is: How do I go about reimbursement the premium tax credit in TurboTax Deluxe, perhaps with a note explaining the situation?