Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

Reply
Valued Pioneer
Posts: 3
Registered: ‎03-25-2018
Accepted Solution

Form8962 ad IRS letter

Hello guys, Ok so I filed my taxes online and I received a letter from the IRS saying I have to fill out a 8962 form and mail it back.

I have insurance from my workplace so I had 1095c when i filled,but it turns out I was under my mom's insurance also.

I have her 1095A, but I need some guidance on where I should put what on 8962.

Council Member
Posts: 508
Registered: ‎04-06-2016

Re: Form8962 ad IRS letter

Fill out Part I using info from your 2017 tax return.  For question 9 of Part II, check "Yes" and go to Part IV.  On line 30, you'll enter the policy number (from the 1095-A), your Mom's SSN (assuming she's the main taxpayer on her return) and the two digit number for the start and end month that you were covered on her Marketplace policy (Allocation start and stop month).  In boxes e-g, you and your mother can decide what % of the premiums/premium credits each of you are going to be allocated. If your mom has already filed her return and if she paid all of the premiums for the insurance (without doing the policy allocation in Part IV), then it's easiest if you're allocated 0% and she was allocated 100%.  To do this, you'd enter "0" in boxes 30 e-g.  Your mother, if the IRS asks her to send in an updated 8962 or if she hasn't filed her return yet, would put the policy number, YOUR SSN, and the same start and stop month. She'd enter "1" in boxes 30 e-g, because that's the decimal equivalent to 100%.

 

After you fill out Part IV, you'll go back up to Part II. For Line 10, check "yes" if the numbers on the 1095-A are the same for all 12 months of the year. If the 1095-A only shows numbers for some of the months, or the numbers change, you'd check "no".  For columns a, b & f you'll take your allocation (0) and mutliply it by the numbers on the 1095-A and enter the result in the applicable column-- this will result in 0s in each of these columns for the months that the 1095-A shows numbers. You don't need to fill out lines 12-23 if you checked "yes" to the line 10 question.  Fill out the columns c-e, but following the info that it asks for.  Then continue to fill out the rest of the form which should be fairly self explanatory.  You will not need to fill out Part V.

 

Karen

Valued Pioneer
Posts: 3
Registered: ‎03-25-2018

Re: Form8962 ad IRS letter

Ok thank you very much, just one more question i think,

Line 34

 

 Have you completed all policy amount allocations? Yes. Multiply the amounts on Form 1095-A by the allocation percentages entered by policy. Add all allocated policy amounts and nonallocated policy amounts from Forms 1095-A, if any, to compute a combined total for each month. Enter the combined total for each month on lines 12–23, columns (a), (b), and (f). Compute the amounts for lines 12–23, columns (c)–(e), and continue to line 24.

 

If I say yes, Does that the mean I have to reenter stuff to lines 12-23.

Council Member
Posts: 508
Registered: ‎04-06-2016

Re: Form8962 ad IRS letter

[ Edited ]

You should check yes-- since if you followed my directions you would have multiplied the amounts in lines 12-23 by your allocation percentage (as a decimal).  

 

 

Checking Yes on line 34 lets the program know that you were able fit all of the policy allocations on the form (that you didn't have more than 4 policies).

 

You shouldn't have to reenter info you've already entered on lines 12-23.

Karen

Valued Pioneer
Posts: 3
Registered: ‎03-25-2018

Re: Form8962 ad IRS letter

Ok, thank you very much.

Council Member
Posts: 508
Registered: ‎04-06-2016

Re: Form8962 ad IRS letter

You're welcome!

 

Valued Pioneer
Posts: 5
Registered: ‎04-09-2018

Re: Form8962 ad IRS letter

when filling out lines 12-23 and you have 0 for the columns.  but with the monthly contribution column d would be a negative number.  should it be entered as a negative or just 0?

Council Member
Posts: 508
Registered: ‎04-06-2016

Re: Form8962 ad IRS letter

Which columns do you have 0s in?  Do you have 0s because there are 0s on your 1095-A, or because you're allocating policy amounts with another taxpayer and your allocation is 0?

 

The simple answer to your question is that if the number you calculate for column d is negative, you should enter 0. 

 

However, if you're getting 0s because there are no numbers in column B because there are no numbers (or zeros) in the Monthly applicable SLCSP premium column B of your 1095-A, you shouldn't be copying those 0s onto your Form 8962.  In this case, you'll need to look up the applicable SLCSP premium on the Healthcare.gov site here: https://www.healthcare.gov/tax-tool/#/ .

 

If you're getting zeros because of the allocation, just enter 0s in column d.

 

Karen

Valued Pioneer
Posts: 5
Registered: ‎04-09-2018

Re: Form8962 ad IRS letter

I am getting 0's because I am allocating the policy amounts with another tax payer and my allocation is 0.

 

My next question is the software doesn't like 0 allocation.  It won't let me efile.  Have you encountered this issue before?

 

thank you,

erika

Council Member
Posts: 508
Registered: ‎04-06-2016

Re: Form8962 ad IRS letter

Since you're filling out the form in response to an IRS letter, you need to print out the 8962 and mail it back to them. Make sure to read the notice you received and follow the instructions in it. It should tell you what they want you send them and where to send it.

 

You should not be e-filing the form.

 

Karen