Wife and 2 Kids on Medicaid but Husband has a 1095-A :(

[Chowdahead]

This case is really racking my brain.  I cannot figure it out for the life of me.  This is a pretty simple return, except for this unique ACA situation that impacts the refund.  I've done dozens of 1095-s already and this is the one that has me stuck.  Help!

 

MFJ w/ 2 young children (5 & 1 year old)

Husband:  W-2 $46,925.00 with $4271 in Fed w/h

Wife:  Homemaker (no income)

Standard Deduction.

 

Apparently Husband was under Medicaid with family for Jan-April.  Then he was informed that since he hasn't been a US Permanent Resident for at least 5 years, he had to obtain coverage through the marketplace for May-Dec.  Wife and 2 kids staid under Medicaid.

 

His 1095-A reflects this accurately and he is the only one listed under Part II: Coverage Household.  

 

May-December

Monthly Premium Amount:  239.20

Monthly Premium Amount SLCSP: 256.86

Monthly Advanced Premium Tax Credit:213.83

 

He says he paid $26 per month out-of-pocket.  The 8962 is calculating the maximum Advanced Premium Tax Credit  (APTC) excess of $600 based on a household of 4 on the 1040, so his return us going down by $600!  So refund is $4216.00.

 

This doesn't seem right to me.  He is the only one on the 1095-A so why is the 8962 saying he owes so much back in the APTC?

 

My only guess is that last year he made $26,000 so his APTC was based off of that, so he should have been paying more monthly in premiums?  Maybe it's just that the 8962 using a household of 4 is what is throwing me off...?

 

Any ideas?

 

 

 

[jklcpa]

8962, part 2, you are only filling in boxes for May to Dec, right?

What is in col E. I think it should be ~ $13/month, and it appears that he was receiving about $200 too much each month from May - Dec.

If that is the case, yes I'd agree that the repayment of the APTC is $600 in this case because it is capped at that. It appears that his household income just squeaks by at being less than the 200% of FPL.  One percent more and he would have had a repayment of $1500, not $600.

[Chowdahead]

8962, part 2, you are only filling in boxes for May to Dec, right?

What is in col E. I think it should be ~ $13/month, and it appears that he was receiving about $200 too much each month from May - Dec.

If that is the case, yes I'd agree that the repayment of the APTC is $600 in this case because it is capped at that. It appears that his household income just squeaks by at being less than the 200% of FPL.  One percent more and he would have had a repayment of $1500, not $600.

 

Yes, I only filled in May - December. You are correct, that Column E is $13.  I think you are correct.  He made twice the money as last year so it would seem in line with what he should pay, given the fact that they probably based his Advanced Premium  Tax Credit off of his 2013 return.

 

Thanks for the second look!

Edited February 9, 2015 by Chowdahead