1095-A Health Insurance Marketplace Statement Form 8962 Premium Tax credit

[dcs4257]

Client (MFJ) received 1095-A showing:

Column A Monthly Enrollment Premiums - $20,XXX (Annual Totals)

Column B Monthly Second Lowest Cost Silver Plan Premiums - $19,XXX (Annual Totals)

Monthly Advance Payment of Premium Tax Credit -$19,XXX

(Annual Totals)

Problem

: His income increased to the extent that line 5 on form 8962 (Household income as a percentage of federal poverty line) is now 401% compared to 182% previous year. Hence, he owes $19,XXX compared to $600 previous year as Excess advance premium tax credit repayment. I am not sure about this huge

balance due amount . Your help/guidance/input is really appreciated.

[TaxGuyBill]

Client (MFJ) received 1095-A showing:

Column A Monthly Enrollment Premiums - $20,XXX (Annual Totals)

Column B Monthly Second Lowest Cost Silver Plan Premiums - $19,XXX (Annual Totals)

Monthly Advance Payment of Premium Tax Credit -$19,XXX

(Annual Totals)

Problem

: His income increased to the extent that line 5 on form 8962 (Household income as a percentage of federal poverty line) is now 401% compared to 182% previous year. Hence, he owes $19,XXX compared to $600 previous year as Excess advance premium tax credit repayment. I am not sure about this huge

balance due amount . Your help/guidance/input is really appreciated.

Potential Fix #1: Try to get income below 400% ($64,960 for a family size of two) by contribution to a deductible retirement account, such as a Traditional IRA (or a Health Savings Account, if they qualify for one).

Potential Fix #2: If #1 does not work, try filing as Married Filing Separately, allocating the 1095-A to each person. That may reduce the repayment for one or both of the spouses.

Potential Fix #3: Both #1 and #2.


If none of that works, the taxpayer owes a lot of money.

[dcs4257]

Thank you TaxGuyBill.