Kevin Knauss: Health, History, Travel, Insurance
Posts related to the Advance Premium Tax Credit subsidy 1095-A from Covered California and the federal income return.
While some incorrect information may be corrected by calling the Covered California customer service line, other errors can only be fixed by filing a dispute form. The data that can be disputed are coverage start and stop dates, health insurance premiums, monthly subsidy forwarded to the health plan, missing family members, or household members who should not be in the tax family 1095-A.
Fortunately, for most California taxpayers, the amount of the California premium assistance subsidy (CPAS) they received was relatively small. For some Covered California households who received large monthly amounts of the CPAS, the repayment could significantly add to their California income tax liability for 2021.
The Applicable Figure is multiplied by the MAGI. The results on Line 8a (45,000 x .0877) is $3,947, rounded up. Under the ACA, the Purmt’s should pay no more than $3,947 or $329 per month for the second lowest cost Silver plan for health insurance. The subsidy advanced by the market place exchange (Covered California, Healthcare.gov) is the difference between the cost of the SLCSP and the family’s consumer responsibility.
Consumers who purchased health insurance through Covered California may be receiving revised 2016 1095-As without requesting one. The revised 1095-As are popping up in consumer’s Covered California accounts and being mailed to them. Consumers should carefully compare the original 1095-A sent out by Covered California to the revised document to make sure it is correct.
While Covered California does a great job of marketing their services as an individual and family health insurance marketplace, the ultimate connection of reporting health insurance coverage to the IRS is not a central part of Covered California consumer education.
The IRS issued guidance on whether tax payers should file an amended return once they receive a corrected 1095-A from either the federal or state exchange such as Covered California. You do not need to file an amended return based on your corrected Form 1095-A. This is true even if additional taxes would be owed […]
In updated Frequently Asked Questions regarding the ACA Premium Tax Credits and federal tax returns, the IRS says tax payers can file with what they know are bad 1095-As issued by Covered California. The tax payer will then have the option to file an amended tax return if they are entitled to a larger […]
Families who purchased health insurance and pediatric dental through Covered California are getting a corrected 1095-A Marketplace statement because Covered California forgot to add the pediatric dental insurance premiums on the initial 1095-A. For families who have already filed their taxes with the incorrect information and subsequently received a corrected 1095-A, they may have to […]
The Treasury Department has decided to expand their February 24 announcement waiving collection of under reported health insurance tax credits to states that are running their own Marketplace exchanges. Tax payers who already filed their tax returns using incorrect 1095-As issued by Covered California will not be subject to the collection of excess Advance Premium […]
Information from a consumer’s 1095-A Marketplace Statement reveals that Covered California continued to credit Anthem Blue Cross with Advance Premium Tax Credits (APTC) even after the consumer had transitioned to Medi-Cal. While there doesn’t appear to be any fraud, Anthem did receive at least $647 for an individual who was no longer a member of their […]
