Level 2

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1095 A

Forum|Forum|6 years ago
March 25, 2020
12 replies
54 views

Hello I am running into a problem with the 1095-A. I have a client that had a monthly premium credit. Her husband had filed for social security disability and he received a large payment from social security. including 2017 & 2018 payments. This increase in 3 years income pushed them over with their premium allowance and they will owe a large amount back ($30k). Has anyone experienced this problem and know a way to correct this?

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Best answer by abctax55

@Sue5 wrote:
included on the healthcare premium was their son. Do you think I could amend to include the son? he was a student the first half of the year but had income of $25k. I did do the proper allocations for the ss prior years.
by the way...thanks for the response.

What are you wanting to amend?

Does the son qualify as a dependent? You need to determine if the son paid for over 50% of his own support.

Are all three of them listed as "covered" on the 1095-A?

(we love you, Bill 🙂

RollTide68

Level 7

Had that problem last year when a client won a disability claim through an employer and pushed his income over the limit. No way around it that I know of.

abctax55

Level 15

There's nothing to *correct* as that's what happens when income spikes.

The only options:

IRA, or HSA or SEP (if self-employed) to reduce income below the 401%. OR, look at MFS - it sometimes can help.

You also should look at the treatment/taxation of the SS benefits received for prior years. It may not help with the 1095-A situation. You basically look at the prior years to see how much would have been taxable in prior years IF received in that year then adjust the taxable amount of the SS for the current year.

HumanKind... Be Both

S

Sue5Author

Level 2

included on the healthcare premium was their son. Do you think I could amend to include the son? he was a student the first half of the year but had income of $25k. I did do the proper allocations for the ss prior years.

by the way...thanks for the response.

abctax55

Level 15

paging @TaxGuyBill

He's our expert on all things APTC 🙂

HumanKind... Be Both

L

linette

Level 6

Did you complete social security information for prior years?

Sometimes this will reduce the amount of income.

S

Sue5Author

Level 2

YES

T

TaxGuyBill

@Sue5 wrote:
YES

Is that second yes responding to my question about the son qualifying as a dependent? Or was that answering the other person's question about the Social Security Worksheet?

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