ObamaCare Subsidy Problem

Forum|Forum|5 years ago
March 26, 2021
3 replies
19 views

My client intentionally over-estimated his income and did not receive a subsidy for healthcare on the exchange. He paid the full premium. He earned just under the 400% level of the poverty line and From 8962 is not calculating a subsidy to be refunded to him in the return result. His MAGI is $65,056 (384%) of the poverty level. His monthly contribution amount is $530 and he paid $750.63 each month.

Why is there no calculated subsidy in the return?

Thanks in advance.

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rbynaker

Level 13

Did the 1095-A report the SLCSP amount? I saw one earlier this week that has $0 for every month (obviously not correct).

If you have a monthly contribution amount it probably did. I think at this point I've forgotten more about PTC than I still remember. My brain is mush.

qbteachmt

Level 15

I'm not sure what this means: "His monthly contribution amount is $530 and he paid $750.63 each month."

He contributed and he paid?

You seem to be asking about the Affordability clause, not the Subsidy clause. Have you entered the SLCSP or what is on the 1095-A? It has to be provided by one or the other method.

Don't yell at us; we're volunteers

T

TaxGuyBill

Level 15

As Rick said, make sure you enter the proper number in column B of the 1095-A.

Go through the Error Check, and make sure the box is checked that the taxpayer is NOT a dependent.

Double check the top of Form 8962 to make sure the income and poverty percentage is what you think it should be.

D

DDCPAAuthor

Level 3

I think the 1095-A is in error. There are only the premium numbers that he paid in column one (Monthly Enrollment Premiums). There are zeros in the other two columns (Second Lowest Cost Silver Plan and Monthly Advance Payment of Premium Tax Credit.

The Form 8962 calculates his actual premium at $530. That's his Monthly Contribution Amount. It's not listed on the 1095-A.

rbynaker

Level 13

You should be able to look up the SLCSP on the exchange.

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

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