Health Insurance

[Dreama]

I have a client who was on the Market for health insurance, now he's getting Medicare.  Once I took the 1095-A off the tax return he's refund went down like $600.00, does that seem correct?  It's like it is penalizing him for not having insurance through the Market Place.  Can someone help? 

[PATAX]

Maybe he was receiving the premium tax credit refund???

[Just-Lisa-Now-]

Completely possible that hes having to pay back the APTC he received with the marketplace insurance, but youre the only one that can see the return and follow the math to see whats actually happening.

[athaureaux6]

It is completely possible. Also, if you take out the 1095 A, the IRS will not process it. Maybe taxpayer paid more that he or she was supposed to pay and that is why she is getting the PTC back. I have seen a couple of those cases. But, why did you take it out in the first place, if she had it for even a month they are going to give a hard time even accepting it when you efile. 

[Dreama]

I took the 1095-A out because he doesn't have one for 2021.  In late October of 2020 he got Medicare, because he's like 66 years old now.  If you do not have 1095-A you have to take that form off, it is only for the Market Place Insurance.  He paid some on the Medicare insurance, but there is no place for it on the return.  There is nothing else except for self-employed people.  So even if you paid it yourself and its not on the Market Place, you get nothing, no credits, which makes it sound like he's getting penalized.

[TaxGuyBill]

Don't look at the refund, look at actual tax return.  Do you see a penalty anywhere on the tax return?

[Just-Lisa-Now-]

"So even if you paid it yourself and its not on the Market Place, you get nothing, no credits, which makes it sound like he's getting penalized."

Huh?

[qbteachmt]

"He paid some on the Medicare insurance, but there is no place for it on the return."

Yes, there is; if there was a split year, you enter the data month-by-month. But it seems that happened in 2020 for this person.

"There is nothing else except for self-employed people."

Now you are referring to deduction or credit, that you think he should be getting?

"So even if you paid it yourself and its not on the Market Place, you get nothing, no credits, which makes it sound like he's getting penalized."

As we've seen stated on this forum more than once, not everything about Life is a tax deduction.

[The_AntiTax_Man]

Your question is not very clear: Is taxpayer receiving SSA retirement benefits in 2021? Is the Medicare B & D deducted from his SSA? Or, is he paying it himself by check or bank account ach? Did he pay supplemental health insurance premiums during 2021? Did he pay accident, heart, cancer, etc insurance premiums during 2021? Did taxpayer receive a refund back from a health insurer for health insurance premiums that he paid previously during 2020 and/or 2021?

Did you report any health insurance premiums that he paid on the 2021 Schedule A?