Tax Slayer entry:
- Needed to answer various questions regarding months covered by Marketplace insurance.
- Dependents’ Modified AGI (MAGI) on Part 1, line 2b must be determined if any dependents had income and had to file a tax return.
- Premium and advance payment data is entered on Form 8962 Part 2 to determine if the taxpayer qualifies for a Premium Tax Credit (PTC) or must repay part of what was advanced.
Advanced payment reconciliation:
- If the advanced payment is more than the tax year’s actual calculated amount, the excess carries over to Form 1040 line 46 as an additional tax.
- If the advanced payment is less than the tax year’s actual calculated amount, the additional carries over to Form 1040 line 69 as a credit.
- See also the Affordable Care Act resource page for more information.
Exemption with an ECN from the Marketplace:
- If any months are not showing coverage, ask the taxpayer if they received an Exemption Certificate Number (ECN).
- If so,
- Answer the exemption question as “YES” and enter the ECN.
Multiple Forms 1095-A:
If there is more than one Form 1095-A for a tax household, the computation of the premium tax credit is based on the second lowest cost silver plan for the applicable tax family members on a monthly basis as if they were on the same policy (do not simply add the amounts in column B of Form 1095-A). Complete Form 8962 as follows:
- Column A (actual plan cost) – add up and enter the amounts from all the Forms 1095-A received.
- Column B (second lowest cost silver plan) – identify the tax family members that had the marketplace coverage for each month and look up and enter the SLCSP quote for those family members as if they were on one policy.
- Column C (advance premium tax credit, if any) – add up and enter the amounts from all Forms 1095-A.
There is an exception to this rule found in the Form 8962 instructions dealing with the Form 1095-A for policies issued in two or more different states. In such a rare instance, the Column B amounts are the sum of the separate Form 1095-A SLCSP amounts.
Some 1095-A forms may have Column B blank or filled-in for some, but not all, the months of coverage. To complete the missing months:
- Use the amount for the filled-in months (when the missing months have the same coverage as the filled-in months);
- Use the applicable coverage quote for 2014 on healthcare.gov/taxes or the applicable state exchange; or
- If the taxpayer spoke with the marketplace and received oral information, use that quote.
If none of the above are possible, the taxpayer will need to get a corrected Form 1095-A, which will not be available until at least March.