Client received a CA form 3895 for marketplace insurance and an IRS form 1095-A. Input both forms and the result is a refund from the state of CA for $4800 and a payment due to the IRS of $8686. The amount due is the total of C Part III on the above fed form, and on the same line on the state form is $52. The client had insurance from the state marketplace for 8 months until going on medicare. Not sure what to do with this. Thoughts, help?
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You may want to set that one aside and wait for Lacerte to update. The American Rescue Plan removes the repayment of Advance Premium Credit for 2020. The California program uses 600% of federal poverty level to calculate the credit vs the federal 400%, which makes a significant difference.
You may want to set that one aside and wait for Lacerte to update. The American Rescue Plan removes the repayment of Advance Premium Credit for 2020. The California program uses 600% of federal poverty level to calculate the credit vs the federal 400%, which makes a significant difference.
Step 1: Stick it on a shelf and come back to it after the IRS has issued guidance on last week's law eliminating APTC repayment for 2020 AND after Lacerte has updated their programming accordingly.
Step 2: After completely step 1, come back and post here again. We will have forgotten all about this as soon as it drops off page 1 of the community.
Rick
PS: I'm not in CA and don't have any of these but my understanding is the Fed uses 400% of FPL for "the math" and CA uses 600% of FPL. That's likely why you're seeing such a stark difference.
The shelf idea is a good one
Better put a label on that shelf and call it "Orca". 'Cause we're gonna need a bigger shelf!
Rick.... you should quit your day job. 🤣
THAT's great tax season humor.
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