Forms 1095A and form 1095C

[hamida_surti]

I have a client who received a 1095A as they were enrolled in Covered California. In Nov of 2020 the husband got a got that offered health care coverage. Since they had already enrolled in Covered California for 2020, they declined coverage for 2020, and enrolled for 2021. Does the fact that the husband could be covered under an employer plan for the last two months and the client refused to take coverage mess up their tax premium in any way? I have already filed their return. Do I need to file an amended return?

[TaxGuyBill]

Yes.  For any month the person is eligible for "affordable" employer coverage, they do not qualify for the Premium Tax Credit for that month.  You should enter $0 for the SLCLP for those months.

[hamida_surti]

Thank you that confirms my suspicion. I do have a twist in this case. My clients have a daughter who was named in the coverage. However, in 2020 she got a job and was no longer a dependent. To optimize the refund, I gave the parents 0, and 1 to the daughter  as she had the lower wages. 

So the parents are already at zero. The daughter was 24 years old. In this case, I don't think I need to amend the parents return, but do I need to amend the return for the daughter who got the benefit of the premium credit.

Please advise

[TaxGuyBill]

Yes, the SLCSP needs to be changed for whoever claims the 1095-A.

[hamida_surti]

Thank you for your reply. Is it as simple is changing the SLCSP to zero for the correct months? Do I have to adjust the monthly enrollment premium numbers as well?