Question: Where on the tax form is the Covered California premium reduction reconciliation done? As I was going through my taxes on TurboTax, it told me that based on my income, I was not eligible for the full premium reduction that I received, which means I owe some of that back. I can't see this reconciliation anywhere on the summary of my tax return. Where does this appear and where can I see how much I owe?
Answer: There are 2 IRS tax forms that you are going to need. First, IRS Form 1095A (draft version of form here) is issued by Covered California to every household eligible for a subsidy in 2014. It will be sent to you by 1/31/2015. It documents your coverage by month including premiums paid and advance premium tax credits received in 2014. Then, you will use IRS Form 8962 (draft version of form here) to reconcile 2014 federal income tax due with advance tax credits received.
where is my d— tax forms seems you people are sloe as molases need my forms
On Dec 20th, updated TurboTax download had the guided questions. Beyond that, I had to check form owned by or something like that to their version of 1095A. Of course, I used estimates for everything. The resulting Fed refund was what I expected. The California form said I owed exactly $1.
It is pretty nice to be able to see the numbers before year end.
What’s amazing is that the formula is recursive. There’s no closed-form way of representing it. It doesn’t take many iterations for software to converge on a solution, but it’s still ridiculous. (And that’s ignoring the fact that the actual numbers are ultimately a function of ZIP code.)
I’m only half-joking when I humbly suggest that the tax prep lobby appears to be even more powerful than the health insurance lobby when it comes to getting what they want in legislation.
A Self employed person does not take the medical deduction on sch C. They take in one form 1040 right above agi next to the deduction for HSA contributions.
Null, it looks like the ACA will be good for the tax prep business :)
I hope Covered California includes good instructions. Ones that say take this line number amount and put in this box on the federal tax form.
TurboTax does Not have the guided questions yet. I just tried to wing it in their version of the forms and gave up very quickly.