Affordable Care Act Credit Ineligible Months

Forum|Forum|2 years ago
January 24, 2024
2 replies
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I had a marketplace policy for all months in 2023 and received an accurate 1095-A. In September I became eligible for VA healthcare, so I became ineligible for ACA credits, but I kept my marketplace plan alongside VA coverage. VA issued a 1095-B showing my eligible months September - December. How can I tell TurboTax to calculate my ACA credit based on eligibility only for January - August?

TurboTax Self Employed Online

MonikaK1

You will complete the ACA section in TurboTax based on the premiums you paid and the assistance you received for 2023. Answer the questions and follow the prompts in the program. Notify your Marketplace plan that you no longer qualify for assistance right away.

Once you are enrolled with VA for your health care, your enrollment meets the standard for minimum essential health care coverage under ACA. You are not eligible for assistance to lower your cost of health insurance premiums if you choose to purchase additional health insurance on the Marketplace to complement your VA health care coverage. Also, you cannot receive a tax credit for yourself when enrolling within the Marketplace if you are currently enrolled with VA for your health care.

Since VA care meets the standard for health care coverage, you wouldn’t be eligible for assistance to lower your cost of health insurance premiums if you chose to purchase additional health care coverage outside of VA. However, you may still purchase private health insurance on or off the Marketplace to complement your VA health care coverage.

See this FAQ from the VA for more information:

Can a Veteran or other beneficiary remain enrolled in VA health care and get the tax credit? No. According to ACA, if an individual has health insurance coverage (such as VA health care), he/she is not eligible for a tax credit to purchase additional health insurance coverage.

Though you can still purchase additional coverage through the Marketplace, you became ineligible for premium assistance in September 2023. It is up to the insured to contact Healthcare.gov to inform them when no longer eligible for the credit.

Because you did pay the premiums and you did receive assistance, that is what you will show on your tax return. Contact Healthcare.gov or your local Marketplace representative right away to inform them of your VA coverage.

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Anonymous

I did "answer the questions and follow the prompts" when entering my 1095-A. Unfortunately none of those prompts or questions included asking whether I was ineligible for premium credits for certain months, which is why I'm here asking how to fix it.

The only solution I can think of is to input $0 for premiums for the four ineligible months, but then there will be inconsistencies between my tax return and the 1095-A.

CatinaT1

You will enter everything exactly as it is on your 1095-A. Don't change any numbers.

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negativeinfluence

For anyone else who runs into this. You can correct by adjusting column B on the 1095-A to $1.00 for all months where you were inelliglble. This will remove the allowed credit for that month and account for the ammount of the credit you recieved when not eligible.