Form 1095-a

[JoeyVegas]

Clients purchase health insurance through an exchange. They pay about $10,000 in premiums for the year. The form 1095-A in part 3 shows column totals of about $27,000 in column A, $24,000 in column B, and $16,000 of Advance Payment of premium tax credit in column C. I entered all the 1095-A data into my software. A "net adjustment" of $5,000 flows onto the Schedule A medical expense worksheet from the form 1095-A data. Do I stop here with my data entry? Or do I enter the $10,000 of health insurance premiums they paid as an expense in the medical expense worksheet, which would be added to the "net adjustment" of $5,000 ?

[kathyc2]

If you print out the 8962 and follow the math all the way through, you will have a better understanding of how the exchange plans and credits work.

[JoeyVegas]

OK. Thank you.