Couple, one on Medicare, one on Marketplace

[Margaret CPA in OH]

Married couple with one over 65 and on Medicare the other 62 and uninsured for 4 months, 8 months on marketplace.  Combined income is 327%, monthly contribution amount is $424.  From 1095-A, I entered the figures for the 8 months in columns a,b and f lines 12-23.  However column e seems to want data entered and there are no calculations for c and d.  I expected to see $424 in column c as it references 'amount from line 8b' but it is 0 and data entry is not allowed.  I did manual calculations and input the difference in column e.  Is this appropriate?  It saves the taxpayer $200.

Also, how to answer the single question about MEC for one taxpayer that did have coverage for full year and one who didn't?

[Lion EA]

I think you have to say No if not everyone on return had MEC for all 12 months. Then entering the 1095s will give them the details.

[Margaret CPA in OH]

Thanks, Lion.  I thought there was something about being without for 3 or 4 months that didn't count against you but could misremember.  Also, the one on Medicare did not receive a 1095 but she is on Medicare. Or maybe she didn't provide.  I will ask.

[Lion EA]

A two-month gap is an exception on Form 8965 (?). Be careful when the gap spans two calendar years. Medicare will show up on her SSA benefits statement; you can divide it out to see how many months were covered (or might need all 12 "check stubs" for her direct deposits if her benefits differ from the norm). If she deferred SS benefits and is paying for Medicare, you can ask for her bank statements to see how many months Medicare direct debited her premiums. I don't use ATX, so can't help you with data entry.

[Margaret CPA in OH]

The lapse is Jan-April so more than 2 months but not over 2 years.  Of course the SSA-1099 shows medicare premiums deducted but I've never seen that it indicates full year coverage.  Would it if only for part year, receiving benefits for less than a year?

Medicare partner is fully covered for the year.  Non-medicare partner has marketplace coverage for 8 months.  Guess I leave fully covered box unchecked and see what happens.

Thanks again!

[Lion EA]

Also, check what happened in December 2017. If he used a "short-gap exception" for 2017, it might be inaccurate now that it continued into Jan-April 2018.

SSA-1099 could begin as early as 62 with Medicare not beginning until 65, so you have to do the math/look at checks/direct debits to see how many months were paid via Medicare. Document.

[Margaret CPA in OH]

Thanks again, Lion.  62 year old is not taking SS, was fully on Medicaid in 2017.  They have to repay some tax credit.  So be it!

[RitaB]

On ‎3‎/‎20‎/‎2019 at 2:16 PM, Lion EA said:

Also, check what happened in December 2017. If he used a "short-gap exception" for 2017, it might be inaccurate now that it continued into Jan-April 2018.

The 2017 short gap is not affected by 2018. 

[Lion EA]

No, but 2018 gap in January forward is affected by 2017 end-of-year gap.