It’s great to get your Tax Subsidy Upfront, it lowers the premiums, but IMHO is all hocus-pocus, with smoke and mirrors. At tax time, push comes to shove, when you file Form #8962 Premium Tax Credit with your 1040, all the numbers come out in the wash. Worse than just having to pay back the subsidies, you may have to pay penalties. See form 2210 and the instructions for more details. Molina Health Care reports that the IRS states that 57% of tax payers may lose the credits as they haven’t filed form 8962 or filed their taxes! Email dated 7.30.2015 IRS New York Times 8.4.2015
Here’s the forms:
Form #8962 Premium Tax Credit (calculation)
Here’s the Instructions
but first you need the Proof of Coverage Form 1095 A from Covered CA
and B if applicable – like if you had Covered CA part of the year and other coverage the rest of the year, from an Insurance Company, Government – Like Medicare or Medi-Cal or your Employer.
Instructions to file the RIGHT forms, if there are ANY issues or problems —- IRS — Affordable Care Act Tax Provisions
When you are done enter the calculation on line 46 and/or 69 of 1040 form.
Other Pages and resources in
Will Donald’s Executive order of 1.20.2017 eliminate having to pay back any excess APTC? Blog Insure Me Kevin.com 1.23.2017
- IRS # 2015-9 No Penalty on payback of excess subsidy for 2014
- Maximum Pay Back of APTC?
- Premium Subsidy Now or Tax Time?
- Tax Return Deadline & Mandate to File