Override 8962 for employee who declined employer sponsored health insurance

[Fisher Bel Air]

Client has declined compliant health insurance from employer and purchased health insurance instead through the marketplace and received form 1095-A. Therefore client should NOT be eligible for any health insurance tax credits that are currently being calculated on Form 8962.  I cannot find any checkboxes or worksheets that apply for this scenario and allow me to remove the calculated premium tax credit showing on the return. Any advice would be helpful.  Thanks.

[rbynaker]

Can you set the SLCSP to $0?

[Fisher Bel Air]

Good thought. Was able to adjust SLCSP premium for each month on 1095-A so that the premium tax credit disappears on 8962.  Of course, it makes the 1095-A DIFFERENT than what was actually reported, but will allow electronic filing and avoid possible recapture at some point in the future.  Thanks.

[TaxGuyBill]

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@Fisher Bel Air wrote:

Of course, it makes the 1095-A DIFFERENT than what was actually reported,

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The Instructions for Form 8962 specifically tell you to enter the correct SLCSP if it is incorrect.

ProSeries might have a problem with $0.00, so you might need to enter $0.01.

[Terry53029]

There is a safe harbor for your client, if he provided honest answers when he signed up for the market place insurance. From IRS.

A14. The regulations under Internal Revenue Code section 36B provide a safe harbor for certain affordability determinations made by the Marketplace. Under the safe harbor, employer-sponsored coverage is treated as unaffordable for an individual if when the individual enrolled in Marketplace coverage (1) the individual (or someone else on the individual’s behalf) provided accurate information to the Marketplace about the cost of employer-sponsored coverage for the individual (and other family members, if applicable) and (2) the Marketplace determined that advance payments of the Premium Tax Credit (APTC) could be made for the individual’s Marketplace coverage because the employer-sponsored coverage was unaffordable based on projected household income. Under these circumstances, a Premium Tax Credit would still be allowed for the individual’s Marketplace coverage if the other eligibility criteria are met, even though the employer-sponsored coverage would have been affordable based on actual household income. The safe harbor does not apply to you if, with reckless disregard for the facts, incorrect information was provided to the Marketplace concerning the portion of the annual premium for your coverage under the plan.