1095-A for Choctaw

[judys3]

I have a customer that is Choctaw and are exempt from paying for market place insurance.  When I enter the 1095-A it is making them pay back the advance payment credit.  Is there a box to mark for this?  I am not finding

[sjrcpa]

I'm no expert, but isn't the exemption just what you stated - exempt from having to buy health insurance?

They probably should not have been eligible to get the advanced premium credit.

And if they are Choctaw, why do they have insurance? Aren't they covered by the Indian Health Service?

[judys3]

I asked this very question.  The Indian Health Service the way it was explained pays for the market place insurance for them.  

There is supposed to be some where on form 8962 to specify they are exempt but I have not been able to find.

[sjrcpa]

Thanks for the info. I was not aware IHS did that. I Googled it and see that they do.

[judys3]

And now I know more.  Their MAGI is 401% of FPL so they would not qualify for no repayment. 

[TaxGuyBill]

We got this resolved in a Facebook group.

From a tax perspective, any repayment applies.  If a third-party is paying for insurance, they may be able to resolve any repayment amount.

[sjrcpa]

Bingo.

I figured it had nothing to do with being Choctaw.

[judys3]

Thank you. The customers parents had told her she was exempt from paying back. I’ve not been able to find anything that substantiates this. 

Hers and her daughter’s insurance premium was paid for them by IHS.  So what you’re telling me is yes they’ll have to pay the credit back and they’ll need to see if this repayment will be covered as well.