Health Coverage Credit

[Super Mom]

Curious, I've never used the health coverage credit--most employer's pay at least 50%????? How do you know??????

[David1980]

This credit is only available to eligible TAA, ATAA, RTAA, PBGC recipients. I've never had one. Seems like a very rare credit.

[Possi]

PTC not a Marketplace purchase

My client did not purchase through the marketplace and will not get a 1095A. Their health insurance is through his employer.

He does have pretty low wages and his lawncare business took a loss, so they are MFJ, one child, AGI is $35,800.

What I read is that you must have purchased insurance through the marketplace to qualify for the Premium Tax Credit.

My software is directing me to the 8962, so I question myself on this.

Any takers? Am I right NOT to take the credit?

Here's the first part from the following link:

http://obamacarefacts.com/premium-tax-credit-form-8962/

Who Needs to Fill out the ObamaCare Tax Credit Form?

You only need to fill out the form 8962 if:

You or a dependent had health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace (also known as an Exchange). This includes a qualified health plan purchased on healthcare.gov or through a state Marketplace.

[Super Mom]

My client did not purchase through the marketplace and will not get a 1095A. Their health insurance is through his employer.

He does have pretty low wages and his lawncare business took a loss, so they are MFJ, one child, AGI is $35,800.

What I read is that you must have purchased insurance through the marketplace to qualify for the Premium Tax Credit.

My software is directing me to the 8962, so I question myself on this.

Any takers? Am I right NOT to take the credit?

Here's the first part from the following link:

http://obamacarefacts.com/premium-tax-credit-form-8962/

Who Needs to Fill out the ObamaCare Tax Credit Form?

You only need to fill out the form 8962 if:

You or a dependent had health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace (also known as an Exchange). This includes a qualified health plan purchased on healthcare.gov or through a state Marketplace.

They can only get the premium tax credit if they purchased through the exchange. My software will direct me to the 8962 if they have no insurance to determine the shared responsibility credit, maybe full year coverage is not checked???

[Justataxguy]

As David1980 said, it is only available to those who qualify under the conditions he cited and is a rarely used credit. I was eligible and used it a few years back after my workplace closed during the 2008 crash. A person must apply to receive a monthly subsidy to continue their former employers health coverage COBRA benefit or they can claim the credit when filing their taxes using form 8885. They will get a 1099-H showing eligible months so they can properly claim the credit on their tax return. It was a very good credit which allowed me to get my then $440+/month insurance for about $90/month and it continued as long as I was out of work and drawing TAA benefits. More info is available at - https://www.irs.gov/Credits-&-Deduct...dividuals/HCTC.

[Possi]

leaning on software

I am so guilty of leaning on my software. As long as I have been doing taxes, 20 years, I'm still not so confident. I knew I was right, but when the software brought that form up, I started doubting myself. These bunny-chasing episodes would sink my ship if I didn't have affirmations! Thanks!

[Super Mom]

Thanks! I second-guess myself all the time and wondered if this was a credit I was missing! Thanks everyone!!