ACA - Off to An Exciting Start

[JohnH]

First client with ACA issues gave me their info yesterday. He retired in late 2014 at age 63 with a buyout,  and was paying for COBRA coverage until June 2015 on himself and his wife. He then bought a policy through the exchange for the rest of the year for himself.  She turned 65 in June 2015 and thus she enrolled in Medicare at the same time the COBRA ran out.  So at this point she has a 1095-B from Medicare showing coverage Jun-Dec.  He has a 1095-A from the marketplace showing coverage July-Dec, with some advance payments.   (The coverage dates were no accident - he negotiated this as a part of his buyout).  He's a smart guy, good with numbers, and thanks to his working with his insurance guy he winds up owing only  $24 of his subsidy back. I suppose his tax preparer can take a little credit for helping in the "projecting income" department as well. 

Seems like they will still be getting a 1095-C from his former employer for the period Jan-Jun. Of course, the employer doesn't know when they will get it done and they advised everyone they have until Mar 15 to actually send them out.    I know for certain they had COBRA coverage with MEC Jan-Jun 2015 because they are personal friends and this was all a frequent topic of conversation during the year.

So it seems I have all the info I need to prepare their return, because I already know what the 1095-C is going to show.  Is there any reason I should tell them we need to wait for the 1095-C? Am I overlooking anything?

[Jack from Ohio]

Check the box.  When client gets copies of 1095-B and 1095-C, put copies in his file.  All done.

[JohnH]

Thanks Jack.  It made sense to me, but I's still gun shy about ACA. I appreciate the confirmation.

[Terry D EA]

I thought I remember reading somewhere the IRS is not associating the 1095 forms with the tax return again this year. Am I correct?