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    #1

    Medical Insurance Premium Tax Credit Repayment

    Haven't had to deal with completing an 8962 before & wondered if this looks about right.
    Customer & spouse (MFJ) (Both now on medicare) bought med. ins. thru the marketplace in 2023. (Taxpayer for 1 mo. - Spouse 5 mos.)
    They'll have a 2023 AGI of $ 52-K. Using the figures provided on the 1095-A, I get :
    line 24 $ 9,824 Total Premium tax credit
    line 25 $ 11,265 Advanced Payment of PTC
    line 26 $ 00.00 Net premium tax credit
    line 27 $ 1,441 Excess Advance Payment of PTC
    line 28 $ 1,800 Repayment Limitation
    line 29 $ 1,411 Excess Advance Payment Premium Payment tax Credit Repayment
    So these people would only have to add the $1,441 (per the software) to their Federal Tax ?
    Thanks for comments
    Tags: None
    #2
    Yes, if they qualify for $9,824 of credit and received $11,665 of Advance credit, they would repay $1,441.

    But the cost of insurance seems rather high for only one month and five months. But I'm probably out of touch with the costs for older taxpayers (the cost is usually based partly on age).

    Comment

      #3
      Yeah, you have issues going on there. First off, if their AGI (MAGI) is 52K they are above the 300% FPL so the amount on line would be 3,000 not 1,800. Is it just them on return or are there also dependents??

      Like Bill says, the amounts don't make sense. Total of six months of per person coverage (1 + 5) works out to 1,877 a month even if the total premium was paid with advance credits. That's more than double the amount for age 64 in my area.

      How many people are on the return and what are the numbers on the 1095A(s)??

      Comment

        #4
        Originally posted by kathyc2 View Post
        (MAGI) is 52K they are above the 300% FPL so the amount on line would be 3,000 not 1,800.

        He said MFJ; a family of two would be 284% so $1800 seems to be the right limit.


        Comment

          #5
          Kathy & Bill :
          MFJ - no dependents
          Their AGI WAS $52,163 but they also had $2,549 in tax exempt interest. The 1095-A only lists these 2 people as covered.
          They were actually covered for 6 months. She was covered for only January. He was covered Jan thru July.
          A. Mo enrollment premium for January $2,839. Feb thru July $1,420 mo. ($11,357 rounded total)
          B. Mo SLCSP premium shown was $2,932 for Jan & $1,466 for Feb - July. ($11,729 rounded total)
          C. Mo advance payment of premium credit shown = $2,839 Jan. $1,411 Feb & March. $1,344 April $1,420 for May thru July. ($11,264 roundedtotal)
          Thanks for your time & attention to this.

          Comment

            #6
            January thru July would be 7 months of coverage - not the 6 in my reply post.

            Comment

              #7
              "That's more than double the amount for age 64 in my area."

              Sanity check:
              1. not everyone signs up for Medicare as soon as age 65, if employer coverage is still available, so might be older than that
              2. There are 4 categories of health insurance plans: Bronze, Silver, Gold, and Platinum with different levels of cost
              3. I happen to have a 2020 Form 1095-A with almost this exact scenario - older than 65, one spouse covered for one month, the other for 4 months. The total SLCSP premium was about $7,300, and that was 4 years ago.
              "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

              Comment

                #8
                Bill caught me on my bad math! They are under the 300%, and they need to pay back 1,411 of the credits they received. Area they live in has very high premiums!

                Comment

                  #9
                  "That's more than double the amount for age 64 in my area."
                  "Area they live in has very high premiums!"

                  Can you please provide some pointer to where you got this information?

                  Is it the Box 12 Code DD amount from your clients' W-2s? Is it for private, individual health insurance? Is it for ACA coverage?

                  One baseline for people in their sixties is Medicare. Medicare Part A is $506/month subsidy from the federal government, then Part B is $175, so that's an annual cost of $8,172, and that does not include Medicare Advantage (Part C), drug (Part D) or Medigap Supplement (Original Medicare).
                  "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

                  Comment

                    #10
                    Originally posted by Rapid Robert View Post

                    Can you please provide some pointer to where you got this information?
                    You can look up 2024 prices here: https://www.healthcare.gov/see-plans/#/?year=2024

                    Then filter it for silver plans. SLCSP is starting point to determine credits. In my area it's 951/mo at 64 compared to 1,411 in question here.

                    Comment

                      #11
                      Kaiser does some phenomenal reporting on ACA. https://www.kff.org/affordable-care-...2:%22asc%22%7D

                      Very interesting that VT has the highest benchmark policy for a 40 year old at 841 while neighboring NH has the lowest at 323.
                      • Likes 1

                      Comment

                        #12
                        Even more interesting is VT and NH were close to national average in 2018. Since then VT skyrocketed while NH decreased substantially. ​

                        Comment

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