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Form 8962

Forum|Forum|6 years ago
August 10, 2020
16 replies
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Good morning. I have a client who needs to complete Form 8962 but I must confess I am a bit confused over Line 6. The client received insurance through the marketplace January through August. Then there was a job change (moving from self employment to W-2 employment) and the client's family size changed in December with the birth of twins. They cannot remember if the Marketplace estimated at the time of enrollment that their income would be at least 100% but not more than 400% of the federal poverty line for their family size. The answer to this question needs to be YES in order to qualify for the PTC. However, even if it would be NO, I can see no path of where to indicate that on the Form. I'm hoping someone has insight into this situation.

Thank you in advance, Dawn.

ProSeries Basic

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Best answer by qbteachmt

The Marketplace doesn't make the determination as to % of poverty level. They did it; they log into the Marketplace account that they established, they review their application that is on file, and they update their application with their life changes. Before doing so, they can see what their most recent set of answers are for the current status.

Just-Lisa-Now-

Intuit Community Champion

You've entered the 1095A into the return? It should do the rest for you automatically.

But be sure to answer the question on the federal information worksheet whether the TP can be claimed as a dependent by someone else, or it wont calculate.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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pianoladyAuthor

Level 3

Hello,

I did enter the 1095 and it does show the client qualifying for the PTC. However, in reading the directions, it seems like they shouldn't.

Thank you for your reply,

Dawn

qbteachmt

Level 15

I'm a bit confused over what is the question here.

"I did enter the 1095 and it does show the client qualifying for the PTC"

Okay, then.

For 2020, it's moot now that they are covered by an employer plan.

And even if a navigator helped them, their application still exists with the Marketplace. If they never had a log in, then they should use their phone access to reach a person who can look up that application, if it matters now. For 2019, there is reconciliation for what happened in reality.

Don't yell at us; we're volunteers

qbteachmtAnswer

Level 15

The Marketplace doesn't make the determination as to % of poverty level. They did it; they log into the Marketplace account that they established, they review their application that is on file, and they update their application with their life changes. Before doing so, they can see what their most recent set of answers are for the current status.

Don't yell at us; we're volunteers

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pianoladyAuthor

Level 3

Interesting. The client said that someone helped them by phone. Probably just don't remember. Have you had those who applied knowing they made less than the poverty level? There doesn't seem to be a place to declare that. ?

Thank you for replying,

Dawn

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TaxGuyBill

@pianolady wrote:
if the Marketplace estimated at the time of enrollment that their income would be at least 100% but not more than 400% of the federal poverty line for their family size.

Did the Marketplace give Advance credit? If so, the Marketplace DID estimate that their income qualified.

@pianolady wrote:
The answer to this question needs to be YES in order to qualify for the PTC. However, even if it would be NO, I can see no path of where to indicate that on the Form.

The answer needs to be YES if the taxpayer's income ends up OUTSIDE of the qualifying range. If it the taxpayer's income is withing the qualifying range, it does not matter.

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pianoladyAuthor

Level 3

Thank you,

That is very helpful.

Cheers,

Dawn

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