What do you do when got both 1095-A & 1095-C all 12 months.

[mikeburg]

I have a tax client who has both a 1095-A (with premium advance payments) and 1095-C from an employer for all 12 months.

What do I as his 2016 tax preparer do?

I would appreciate all information & opinions.

Thanks so very much mikeburg

[ATSMAN]

I have a tax client who has both a 1095-A (with premium advance payments) and 1095-C from an employer for all 12 months.

What do I as his 2016 tax preparer do?

I would appreciate all information & opinions.

Thanks so very much mikeburg

Ask a lot of questions. I had one like that where the young man signed up at our state exchange for Commonwealthcare and then switched jobs where they did offer health insurance and dental/vision after a waiting period. He says he signed up for dental and vision but not health. He got a 1095-A with APTC and a 1095-C from his company with the month since hire checked.

I used the 1095-A.

[TaxGuyBill]

What sections of the 1095-C were filled out?

What is on Lines 14, 15, and 16?

[taxea]

I input everything I get.

[kathyc2]

I have a tax client who has both a 1095-A (with premium advance payments) and 1095-C from an employer for all 12 months.

What do I as his 2016 tax preparer do?

I would appreciate all information & opinions.

Thanks so very much mikeburg

Since there is a 1095A you need to reconcile the PTC. I've not seen anything to indicate that we have a responsibility to determine if client was eligible to buy an ACA plan. If the 1095C indicates he had coverage or the option of affordable coverage, you could tell him to expect correspondence from the IRA.

[mikeburg]

Addition info answering your questions.

Hey, you people are a lot of help!
I can't find anything as of yet where tax preparers are responsible, but I was worried I may be overlooking something I must do.

Really strange. The 1095-C is from Cameron International Corporation & shows all three, Taxpayer, Spouse, & 14 year old child with the box check on all three, column D "Covered all 12 months".

However, the 1st line of Part III of the 1095-C, "If employer provided...check each covered individual"s box is checked.

The taxpayer did cease working for the company during the year & the company may have filled the 1095-C wrong, but being such a major national company, I would not think so. The taxpayer did draw almost $4,000 unemployment from the Texas Workforce Commission but I have never seen where they help unemployed with their health insurance.

Also, I doubt the taxpayer could afford to pay both cobra & the market place insurance at the same time.

1 What do you think?
2 Should I just assume the 1095-C was wrong?
3 Or should it even matter to us tax preparers?
4 Wouldn't the tax preparer have the responsibility to tell the client he is in trouble or
he is doing something wrong?
5 He is in the wrong having both isn't he?
6 Is the tax client even in trouble?
7 What other questions should I ask the taxpayer?

Thanks so much, mikeburg

[TaxGuyBill]

What is on Lines 14, 15, and 16 of the 1095-C?

[mikeburg]

On 14, 15, 16

Sorry I did not answer that earlier.

14 only has 1A in column for "All 12 Months"
15 is blank all the way across
16 is blank all the way across.

Thanks for your patience. mikeburg

[TaxGuyBill]

That is weird. Besides wrongly showing a full year of coverage (probably), Line 16 being blank would mean the employee did NOT have coverage, but Part III being filled is DOES indicate he had employer coverage.

Does the client's income and other circumstances qualify him for the Premium Tax Credit? If not, I would just ignore it and let somebody else sort out the problem.

However, if the client does potentially qualify for the Premium Tax Credit, the client should go to his former employer and ask about that 1095-C. Although I'm not an expert with those, it seems really messed up in several ways. From what I can tell, if the client actually had coverage, there should be a code in Line 16. If the client did not have coverage, Part III should be blank. The client also needs to know which months they possibly had insurance.


The problem is that if the 1095-C is not corrected, the IRS will disallow the Premium Tax Credit. Code 1A means qualifying "affordable" Minimum Essential Coverage was offered to the employee (and the spouse and dependents were also offered coverage). In most cases, that automatically disqualifies the Premium Tax Credit (the possibleexception would be if they had a loss on the tax return to lower their MAGI and they did not actually enroll in the employer insurance).

Actually, before the IRS would disallow the credit, Code 1A should mean that YOU should disallow the credit on the tax return (enter $0 for the SLCLP). In the event that you allow it without the 1095-C being corrected, you REALLY would need to put a Disclosure on the tax return and with the client about the situation.

[kathyc2]

Another possibility is the 1095A is incorrect. I've ran into situation where ACA plan was cancelled but not reflected on 1095A.

Starting point for me would be to ask client if when and where he had insurance.

[mikeburg]

Thank you.

Thank you for all your help. I think 1095 was in error. mikeburg