Market Place Insurance

[rwm221]

I have a client who has a business and lost money this year -2000. He also has marketplace insurance. When I went through 8962 it says it wants all of it money back $11,000. Did I do something wrong

[TaxGuyBill]

Was that his only source of income? What does Line 3 of Form 8962 show?

He received Advance credit of $11,000-ish (column C of the 1095-A), right?

Is he Married Filing Separately?

Is the taxpayer a dependent?

Assuming he is not a dependent, some software you need to indicate the taxpayer is NOT a dependent in order for the software to calculate Form 8962 correctly. If you are unsure how to do that, let us know what software you use and maybe somebody can help you find that.

[terryats]

When you filled out the 1095A did you fill in all three columns

[spanel]

Also, you have to have income to receive a subsidy. Try showing a profit or use less sec 179 or personal expenses (cell phone/buoh) and see what happens.

Chris

[TaxGuyBill]

Also, you have to have income to receive a subsidy. Try showing a profit or use less sec 179 or personal expenses (cell phone/buoh) and see what happens.

Chris

Generally, if a person receives Advance credit (which seems to be the case with this question) it is okay if their income is below 100% of the Federal Poverty Level.

[terryats]

if your clients income is $-2000, and he has no other income there is a safe harbor where you don't have to pay it back. You will have to research that.

[AusTaxCPA]

What did you finally end up doing?

[DoubleO]

Do expect an audit. When he applied, he had to estimate his income. There will be questions on why he reported X amount on the application and a different amount on the 1040. It is defensible if all supporting information is there as things happen. Just warning: don’t be surprised if audited. Of course, with no one at IRS any more, may no longer be an issue.

What’s he doing for healthcare in future yesrs: Medicaid?

[DoubleO]

Do expect an audit. When he applied, he had to estimate his income. There will be questions on why he reported X amount on the application and a different amount on the 1040. It is defensible if all supporting information is there as things happen. Just warning: don’t be surprised if audited. Of course, with no one at IRS any more, may no longer be an issue.

What’s he doing for healthcare in future years: Medicaid?

[Rapid Robert]

Do expect an audit. When he applied, he had to estimate his income. There will be questions on why he reported X amount on the application and a different amount on the 1040.

An audit by whom? There is no single agency in charge of ACA marketplace submissions. Do you think the IRS has records of every ACA marketplace application made?