Not getting a credit on Form 8962. Family of 4 making $60K a year. They did not take any subsidies throughout the year. Shouldn't they receive a credit? TY

[TaxGuyBill · Accepted solution]

Probable Fix #1:  Make sure you check the 'Not a Dependent' check box on the Federal Information Worksheet (the first page where you enter the name, address, SSN, etc. of the taxpayers).  The 8962 won't work until that is checked.

If that has already been done, then Fix #2:  If the 1095-A does not have numbers in column B, make sure you look that up and enter it.

https://www.healthcare.gov/tax-tool/#/

If neither of those work, come back and let us know.

[skipinman]

First of all, thank you so much Bill.  The first part is not applicable as they were all dependents and unchecking boxes took away Child Tax Credit, etc.  Following the link you gave is what was expected as far as adjusting the refunds and giving the client their credit.  So many questions.  I assume you have done this calculation and inputted on Form 8962.  Have  you had any issues from the IRS as you did not report the numbers in column B from the 1095-A?  Did you attach anything to the return explaining why the numbers on the return did not match the 1095-A?  Was there a corrected 1095-A requested from the government?  I am crazy curious why the Marketplace would put zeroes in column B of the 1095-A knowing this is not correct.  Again, thank you so much.

[TaxGuyBill]

For the first part, I meant you need to check the box that the TAXPAYER (parents) are not a dependent of somebody else.

For the second part, you are required to look up the numbers.  If the Marketplace does not issue Advance credit, they don't necessarily ask the questions they need to calculate column B.  You also would need to enter a different number in column B if something changes (such as your Family Size on the tax return is different than what you told the Marketplace, or if you did not report such a change to the Marketplace).

It is a fairly common thing to look up the numbers.  I'm unsure if the taxpayer will receive a IRS notice asking about it or not, but the IRS doesn't read attachments so there is no point in doing that.  Hypothetically the IRS has the ability to look up those numbers too, so hypothetically they would not need to ask you about the numbers you entered.  Whether or not they are actually set up to do that or not, I'm not sure.

[Just-Lisa-Now-]

"you need to check the box that the TAXPAYER (parents) are not a dependent of somebody else"

This has tripped me up more than a few times now!