1095A gone crazy

[JimmyTheMan]

Both a man and his ex wife are the recipient of the 1095A  I added nothing into the software for his medical bills but after I input the 1095A the $20950 populates as Medical & Dental  He also took $20,207 of his 401K, and yes they took $4140 in Fed taxes and actually took $1566 in state taxes. I did enter the total amount of the distribution as as Code 1 an early distribution, A Gross Distribution, the Taxable amount, and Total Distribution I did not enter the net. He was in the hospital for a week It could have easily been $21K I do not have a mentor we could really use your help. 

The guy is filing single and his ex paid $334 monthly for their insurance the entire year but we will count it as if he paid for it because they are divorced and she has no income. Looks like they kept the family coverage the entire year as the 1095A is consistent He had $30,192 in Social Security but the program is only counting $5670 as income Looks like his income is just over 2 times but not 4 times the Federal poverty level. Obviously its the pension that is killing him. Does he really owe $17K?

no regular income

Interest income	74
Taxable pensions	20,207
Taxable social security benefits	5,670
Total income	25,951
Total adjustments	0
Adjusted gross income	25,951
Medical & dental	20,990
Taxes	3,769
Interest	3,107
Total itemized deductions	27,866
Standard deduction	12,200
Larger of itemized or standard deduction	27,866
Taxable income	-1,915
Excess advance premium tax cr. repayment	19,020
Tax before credits	19,020
Total credits	0
Tax after credits	19,020
Tax on IRAs, other qual. ret. plans, etc	2,021
Total tax	21,041
Federal income tax withheld from 401K	4,041
Total payments	4,041
Amount you owe	17,000
Marginal tax rate	0.0%

[TaxGuyBill · Accepted solution]

If is Modified Adjusted Gross Income is over 400% of the Federal Poverty Level, yes, he needs to repay that $19,020 in Advance Premium Tax Credit.

For the calculation of the 400%, you also need to add in the non-taxable social security.

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@JimmyTheMan wrote:

Both a man and his ex wife are the recipient of the 1095A 

Are both of them listed on ONE 1095-A?  If so, they REALLY, REALLY want to allocate 100% to the wife who had no income.  See Allocation Situation #1 in the Instructions.

https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=16

[qbteachmt]

@TaxGuyBill 

For reference, here is this topic where it first started, so that you can read the history up to this point:

https://proconnect.intuit.com/community/tax-talk/discussion/re-1095a-gone-crazy/01/63941/highlight/f...

[JimmyTheMan]

I could not figure this out and I had several people tell me he owed the $17K but basically what we had to do was allocate half to the wife actually ex wife as of 12/3 and that cut his amount owed in half. The real reason why he had to pay was that when he took his $21K early 401K so that and his SS# $ which was counted in full triggered the 4x over the Fed poverty rate!!! Thanks a million for your help I really felt he didn't owe the whole thing and i really wanted to help him out!!!

[TaxGuyBill]

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@JimmyTheMan wrote:

 what we had to do was allocate half to the wife actually ex wife as of 12/3 and that cut his amount owed in half.

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If the ex-wife is agreeable to it, you really want to allocate 100% to the ex-wife.  Your client won't owe anything, and the ex-wife will likely get a REFUND.

[qbteachmt]

"If the ex-wife is agreeable to it, you really want to allocate 100% to the ex-wife."

On the original topic, we are told 1095A Premium is $1908 and Advanced Payment is $1585. The difference is $323, or similar to the $332 that the ex-wife paid all year (perhaps with a typo = transposition error)?

And you stated: "Both the man and his ex wife are the recipient of the 1095A"

So why wouldn't you put this on the Ex-wife?