Client has a 1099 H with figures for some months. I called to find out if they paid into this plan. THey paid some amounts, but I'm not sure to who. I am not clear what this IRS health coverage tax credit is about? Does anyone have any experience with this? If so, what questions do I need to ask my client about it?
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A little knowledge
I had one client with that, but she didn't follow me so I don't have access to her prior returns. I remember that the software did a great job. She brought me her canceled checks and statements for her health care premiums and a letter explaining that she qualified and why. I believe the instructions for the form were also very helpful. One year she started during the year, so we had only eight months of premiums or whatever; then the next year was a full year. Now I'm no longer with that tax preparation firm... If you tell me what you need to know, maybe it'll jog my aging memory. -
Client has told me she has made payments, but I think I need to find out to who. I don't understand what this HCTC advance payments are. Instructions say if made to US then not eligible for credit.Comment
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If deducted from premiums...
You did jog my memory! She can deduct her premiums on the form # I can't remember if she pays the full amount. Eventually, she'll probably get into a government program where her credit will be deducted before billing her for her premiums. Then, she won't need the form to get the credit after the fact on her tax return. But until that time, she can deduct. My client was the widow of a union or government employee. Ask her to bring in her letter (my client's mailing even included a copy of the form and instructions) and her canceled checks for her premiums and her invoices from the insurance company. I think you might have to include copies with her return so they have proof of payment for the specified purpose.Comment
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