QSEHRA is considered Affordable - entered it on W-2 Bx 12 code FF and clicked No box on Form 8962 QSEHRA smart w/s-proseries is calculating the PTC–any suggestions?

Forum|Forum|6 years ago
February 27, 2020
6 replies
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ProSeries Professional

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Best answer by TaxGuyBill

The last I checked, that QSEHRA checkbox didn't do anything.

If it was "affordable", then just enter ZERO for the SLCSP for those months. That will disqualify the credit for those months.

@qbteachmt For purposes of the Premium Tax Credit, there *IS* an "affordable" calculation for a QSEHRA.

qbteachmt

Level 15

The HRA is not "affordable" because it is not a Health Plan. It is how an employer can participate in helping employees with health care costs or health coverage costs. Health Reimbursement Arrangement.

https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

Explains the value reported isn't the same as Received, but Qualified to receive. It also explains: "Although a part of the permitted benefit is a taxable reimbursement, that does not change the amount you report in box 12 with code FF."

So, you need to find out everything that applies.

Don't yell at us; we're volunteers

T

TaxGuyBillAnswer

The last I checked, that QSEHRA checkbox didn't do anything.

If it was "affordable", then just enter ZERO for the SLCSP for those months. That will disqualify the credit for those months.

@qbteachmt For purposes of the Premium Tax Credit, there *IS* an "affordable" calculation for a QSEHRA.

qbteachmt

Level 15

What you should first confirm is that taxpayer's health care coverage, though. Well, although MEC (minimal essential coverage) might not be applicable to prove to the employer, now that the penalty is gone? Hmmm. I'll have to look up these details.

Don't yell at us; we're volunteers

T

TaxGuyBill

@qbteachmt "Affordable" for purposes of the Premium Tax Credit is a completely different thing than "affordable" for the penalty (which no longer exists).

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