1095A

[neilbrink]

Taxpayer had no coverage during the year, but his spouse was enrolled in the advanced payment of premium tax credit for the last 11 months of the year.  Modified AGI is $33,499.  Form 8962 is indicating an amount of $1353 of excess credit.  However, Form 8965 is indicating 0 shared responsibility.  So, no penalty for him, but excess credit payback for her? Is this correct or am I missing something?

[Tax Prep by Deb]

On form 8965 did you answer the questions on the tab SRP Questions?  Make sure question 3 is marked yes, then go to worksheet A, pull in the taxpayer that had no coverage and mark the full year box and it will then calculate the penalty.

[neilbrink]

As stated, the penalty calculation is zero.

[jklcpa]

It sounds as though the program thinks the coverage is for both of them.  The box on line 61 of the 1040 should be blank because not everyone has coverage all year.  Then you have to tell the program that the premiums paid in the lower portion of the 8962 are for only one person. Then calculate the penalty for the husband on 8965.  If you've included the 8965, is the program generating an exemption code?

[neilbrink]

family size 2 household income: 1099R 13,622. SS 19,877. Total 33,499. 1095A (for 11 months) a)8,453 b)8,144 c)7,414 Form 8965 is telling me that there is no penalty on the taxpayer not having any coverage.  Form 8962 is telling me that there is $1353 of excess premium credit charged to the spouse.  So, the taxpayer, who has no coverage all year, has no penalty.  The spouse, who has coverage on the market for 11 months, is being charged $1353 for excess premium credits.

[Marie]

I am having a terrible time with that worksheet, the penalty, figuring if affordable.  Instructions are very  confusing!

[Jack from Ohio]

On 4/10/2017 at 5:47 PM, neilbrink said:

family size 2 household income: 1099R 13,622. SS 19,877. Total 33,499. 1095A (for 11 months) a)8,453 b)8,144 c)7,414 Form 8965 is telling me that there is no penalty on the taxpayer not having any coverage.  Form 8962 is telling me that there is $1353 of excess premium credit charged to the spouse.  So, the taxpayer, who has no coverage all year, has no penalty.  The spouse, who has coverage on the market for 11 months, is being charged $1353 for excess premium credits.

Yes.  That is correct.  The over payment is an amount the IRS can collect.

They should have updated the information on the Marketplace website.

[jklcpa]

Before anyone else expends more time with answers, please note that this revived topic was started 10 months ago.