1095A Health Insurance Subsidy Form Dollar Amount Explanation, 2022

Each column of the health insurance subsidy 1095A has a different dollar amount by month. I explain what each column represents and its importance to reconciling the Premium Tax Credit subsidy on the federal tax return.

[@marketingwebpro]

Hello Kevin, I really enjoyed your video and have a question. I bought insurance from an agent through the marketplace. Last February, I left my job to look after my elderly mother. My 20-year-old son, who is attending college, lives with us, and my 22-year-old daughter, who just graduated, was also jobless at the time. She secured a contract job in June of the previous year, but I didn't obtain a separate insurance policy for her. What steps should I take?

[@KevinKnauss]

All of the subsidies revolve around your tax household. Will you take your daughter as a dependent on your tax return? Either way, you probably received too much Premium Tax Credit subsidy. 1st, your daughter's income in included in your household income if you take her as a dependent. 2nd, if you don't claim your daughter as dependent, then you receive Premium Tax Credit for a larger household size than what is on your final tax return. You may want to review IRS Publication 974 and the instructions for form 8962. You can allocate Premium Tax Credits to another individual that is not on your tax return. You can also request a separate 1095A for the daughter if she is filing her own tax return. You have several options for resolving the conflicts, but it will take some time to determine which option minimizes any repayment of excess Premium Tax Credit.

[@marketingwebpro]

@@KevinKnauss Thanks for getting back so fast. Just seems like such a pain.

[@marketingwebpro]

@@KevinKnauss She does her own taxes so I will need to request a separate form for her.

[@KevinKnauss]

@@marketingwebpro If time allows, you can request a separate 1095A if one was not already provided. But you can also allocate part of the subsidies you received to her. That happens on form 8962 premium tax credit reconciliation.

[@KevinKnauss]

@@marketingwebpro It can be tedious. Usually professional tax preparers have the software to make the task easier.

[@gm1937]

AWESOME AND I HAVE JUST ONE QUESTION. Can you DEDUCT the premium (your contribution) that YOU paid as part of your medical expense deductions? or is that already factored into form 1095-A?

[@KevinKnauss]

If you are self-employed and meet certain IRS requirements, you can deduct the health insurance premiums you paid to reduce your net income. IRS form 7206 is the form you use to determine if you can deduct the health insurance you paid. It can be tricky, but IRS publication 974 gives an explanation how to make the calculation.

[@gm1937]

@@KevinKnauss thank you so much Yes I am self-employed. I was thinking that deducting the portion of the premium that I paid on a monthly basis under my medical expense deductions would be duplication if it was already factored into form 1095-A.

[@KevinKnauss]

There is a special place for the health insurance premiums to be an expense for a self-employed individuals. It does not fall under the medical expense category. That is reserved for the cost of health care services such as labs, test, procedures, etc.

[@Ken-kb6yb]

Hi, my 1095a is shared with one of my family And filing separately. The person only had covered ca for Oct , nov. and dec. do I input only 10-12 or do I input everything including 1-12 cause I was covered. My TurboTax is asking if I shared with other and asking how many percentage for this person.

[@KevinKnauss]

It would be great if you could get Covered California to issue a 1095A for that household member so you have a clean 1095A just for your tax household. Otherwise, IRS publication form 8962 does have instructions for when the 1095A includes multiple taxpayers on one 1095A. You may want to review form 8962 to see if you are better off trying to split the 1095A at CC or use the shared alternative Premium Tax Credit reconciliation.

[@DivineFailure1]

If part III part B is 0$ is that an error. I didn’t take any credits the whole year and column c says 0$ which I understand but column b should have a number.

[@KevinKnauss]

Column B needs to list the Second Lowest Cost Silver Plan. Without that number, you can't determine any subsidy you may be eligible for. Column C of the 1095A could be $0 if no Premium Tax Credit was advanced to your health plan. The caveat to the above is if you were enrolled in a Minimum Coverage plan that is not eligible for subsidies.

[@DivineFailure1]

@@KevinKnauss yes I called the marketplace and they said I would have to calculate the slcsp and place those numbers myself, that they wouldn’t amend the 1095 A, lucky I caught it though

[@KevinKnauss]

@@DivineFailure1 That’s interesting that they would not correct the 1095A, it is obviously wrong. Regardless, make sure you search for the SLCSP for 2022, not 2023. And document everything. You are reporting this to the IRS. If you moved during the year, make sure the SLCSP is not different. The SLCSP can change based on your zip code. The carrier may be the same, but the rate may be slightly different. Make sure you calculate the full rate of the SLCSP and don’t use a number reduced by a subsidy or credit. I usually put in a high income amount like $500,000 to make sure that no subsidy is applied in the Shop and Compare system.

[@mcace64]

hey Kevin this is Martin living in California been using h&r block for the last few years but now under the 1095a section it's it's asking numbers match yes button numbers not button all numbers match so I hit the yes but but told needs to be. go back several times everything is correct but it's still saying not correct and finally locked me out and saying I need to update right now I can't remember what they called it but it would have that form 8962 and then later it said after upgrading to that plan says everything is fixed I'm not sure if it fixed it so I grated to get a pro do review still confused plus it cost a small fortune and I am low income wondering if I should have selected no back at the start of the 1095-a since California got rid of the advanced premium tax credit I believe or on they're in with a software needed hopefully you can help I don't know if you're a professional tax guy horny if you're just somebody helping out hopefully you can help but if not just say no I can't hopefully you can give me some advice sorry for the length thank you very much

[@KevinKnauss]

I'm not a tax professional. In 2022 there was no California Premium Tax Assistance subsidy, only the federal Premium Tax Credit. You can check the software by manually filling out form 8962 and see if your results match the software. If you have all the 1095As for 2022, you can download form 8962 and the instructions. It is pretty straight forward.

[@mcace64]

@@KevinKnauss thanks Kevin I was a little confused I kept trying to answer yes and after reading coveredca and reading your reply helped out I should have went back in hit the no button and would have chosen that form 8962 now I can try to cancel that pro review I'm just a little ignorant typical reading so it takes awhile for me to catch on appreciate the help thank you very much

[@KevinKnauss]

@@mcace64 No, you are not ignorant. This tax credit crap - and U.S. taxes in general - are stupidly complicated. I'm convinced the complexity is designed to keep the tax software makers and CPAs in business. It is not normal person friendly at all.