Marketplace Health Coverage; Advance Premium Tax Credit, Penalty, Exemptions, & Missing Form 8962 IRS Letter

Health Insurance and Miscellaneous Items Page

There are two questions in regards to Health Coverage. The system uses the answers to these questions to either include or not include Form 8962 or Form 8962.
IMPORTANT: The Forms can be added and completed, but will not be included in the filed return anytime the applicable question is answered as the Forms not being needed.

Qualifying Health Coverage in 2016 (Question 1):
Yes - If the entire household had no changes to health coverage the entire year, and had qualifying health insurance the entire year.
No - If there were any changes to the health coverage for anyone included in the tax return, or if anyone was without health insurance for any amount of time.

Exchange Provided Health Coverage in 2016 (Question 2):
Yes - If anyone included in the tax return purchased health coverage through the Health Marketplace (Obamacare) at any time during the tax year.
No - Any other qualified health insurance (Employer Paid Health Insurance, State Health Insurance Medicaid, Medi -Cal, or any other State Paid Insurance/Similar Plan).

Form 1095-A, Form 1095-B, and Form 1095-C

Form 1095-A
; Health Insurance Marketplace Statement. 
Anyone who purchased their health insurance from the Health Care Marketplace (Obamacare) any time in the year, will receive a Form 1095-A, 
The information from Form 1095A is required to be entered into Form 8962. 

Form 1095-A is the only the Form 1095 that is required to be reported. 

Form 1095-B; Health Insurance Statement from Other Insurers; (Medi-Cal, Medicare, other similar state Health Insurance).
This type of health Insurance is not included in the tax return.

Form 1095-C; Health Insurance Statement for Employer Paid Health Insurance. 
This type of health insurance is not included in the tax return.

Form 8962; Premium Tax Credit

Form 8962 must be included in the federal tax return any time the Taxpayer, Spouse, or Dependent(s) listed in return received Health Coverage from the Marketplace for any length of time in the last year.

When Form 8962 is missing from a federal tax return that is required to include it, this will result in a delay in any expected refund, and risk being fined.
(See the Form 8962 IRS Letter section below)

The top of this page will display the selections made on Health Care and Misc Page. Click the pencil to return to the Health Care and Miscellaneous Page
to change the selection.


 All Months Same:
Yes - Form 1095-A has no changes in any of the monthly amounts (lines 21 - 32, in Columns A and B).
No - Form 1095-A has a difference in amounts (lines 21 - 32, in Columns A or B). 

Shared Policy
Shared Policy section is required when a taxpayer’s health coverage includes someone not included in tax return.

Form 1095-A Entry Page

nter only the totals from Form 1095-A into the corresponding box on the Form 1095-A Entry Page. 

Not All-Months-Same
- Enter the amounts in to corresponding boxes for January - December.

     Any time there are months without coverage, enter 0 into the three boxes of the corresponding month.

Form 8965; Marketplace Exemptions

Everyone included in the tax return will be listed in the Form 8965 Health Coverage Exemptions box. You must be edit and complete the Exemptions page for each household member listed.

"No Full Year Health Coverage" must be selected to include Form 8965; Health Coverage Exemptions to the return. If form is added, but "Full Year Coverage" is selected this return will not include Form 8965. 

  Select "No Full Year Coverage" for any of the following: (this is not a complete list)
- Any household member that had a change in cost of Qualified Health Insurance plan. 
- Household that has different Qualified Health Insurance Coverage. 
- Any household member had months without health coverage. 
- Dependent included on Form 1095-A not listed on tax return. **

Click "Edit" to enter the Coverage Exemptions Detail Page. 

The information entered here will be used to calculate any Premium Tax Credit or Repayment of the Advance Premium Tax Credit.
When Insurance is selected as “Changes in month-to-month” the entire household is considered “not insured” until Form 8965 Page is completed.

Annual Detail:

Use the Annual Detail section anytime a household member had Health Insurance the entire year or no Health Insurance the entire year. 

Note: The Annual Detail box can be used regardless if the Health Coverage changed during the year, as long as the individual had qualified health coverage the entire year. 

Month-by-Month Detail:

Use the Month-by-Month Detail section for any household member that did not have Health Coverage the entire year. 

When this method is used, a selection must be made from the "Type of Coverage" drop-down box for every month (Jan - Dec).

Anytime a Coverage Exemption is selected there must be a Exemption Certificate Number entered. The Health Marketplace mails the Exemption Certificate Number to taxpayers that apply of an exemption. 

Taxpayers with MAGI below the federal poverty level, the system completes Form 8965 and nothing more is needed in regards to the Form 8965. A message will display on the Form 8965 Health Coverage Exemptions page, and you will be unable to edit the detail page for household members.  

IRS Letter: Filed Return Missing Required Form 8962

Caution: Every tax situation is different, the IRS may require additional information from an individual. This is not tax advise. The following information outlines the steps required in the system to add Form 8962 to a return after it has been filed. 

When a federal tax return is filed that required Form 8962, the IRS will generally send a letter requiring a completed Form 8962. The IRS commonly states they do not want a From 1040X, Federal Amendment. (Again, there are times the IRS will require additional information, this is currently the most common scenario)  

Step 1: 

Amend the Federal Return in the system, 

Returns that have been filed and accepted, changes can not be made. The only option for adding a Form to the return is to do a Federal Amendment, Form 1040X.
Once the amendment is complete, you will have the option to print the Form 1040X and all Forms included in the Return.  

Select "Amend the Federal Return" on the Navigation Page.

See the Federal Amendment page for more information on Amending a Federal Return in the program.

Step 2:

IMPORTANT: (Do not skip this step) 
A completed Form 8962 will not be attached to a tax return if the question asking if Health Insurance purchased from the Health Marketplace is answered "No". 


Step 3: 

Add Form 8692: To add Form 8962, follow these three steps:

Please see sections above for information on entering information into Form 8962 Premium Tax Credit Page:

Once you have completed entering all the necessary information and verified question two on the Health Insurance & Miscellaneous page has been selected "Yes" to include Form 8962, complete the remaining steps of the amendment. 

CAUTION: DO NOT go to Step 4 of the Amendment until you are finishedStep 4 completes the amendment, your Forms are available to Print/View/Save, and the Amendment is locked.    

Once the system has locked an amendment, they generally can not be opened. Depending on the circumstance, you can contact our office and request an amendment be unlocked. We generally allow 1 amendment unlock per tax season free of charge. There is a $35 Fee for each additional amendment unlock. A amendment can not be unlocked more than 2 times. All unlock requests must be approved by management, the determination is based on their review. 
Management has the right to deny a amendment unlock request when multiple requests have been made.