Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Understand 1095-A form
Old 01-25-2020, 03:19 PM   #1
Recycles dryer sheets
 
Join Date: Oct 2018
Posts: 87
Understand 1095-A form

I just received 1095-A form for 2019, it is my first year in 2019 so I try to understand it.
On the form partIII,
columnA - monthly enrollment premium $1375.29
columnB - monthly second lowest cost silver plan premium $1292.04
columnC - monthly advance payment of premium tax credit $1072.

when I obtained insurance in the beginning of 2019, the monthly premium was 1383.45, the monthly tax credit was 1072, I have paid net monthly premium $311.45 for 12 month in 2019.

Why is the 1095-A form stated different monthly enrollment premium?

What is the purpose of columnB?

THANKS!!
__________________

Eucerin is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-25-2020, 03:41 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,823
As to Column A, I have seen small differences in this amount some years. Other years it's accurate or very close. I called and asked one time and the explanation is that some insurance plans will include something that is not part of the requirements of an ACA plan. So they can only include the required parts. That may be your $8.16 difference.

The purpose of Column B is that all subsidies are based on the second lowest cost silver plan (SLCSP) for your area and your age. Using your income as a percentage of the Federal Poverty Level and a chart from the IRS determines how much your monthly contribution should be. Deduct that from the SLCSP and you get your subsidy amount. Then you can decide if you want to use that subsidy amount on a lower or higher cost plan.

It's all very confusing until you see how it works out for YOU. Then it will make sense. It's all to reconcile if you got all the subsidy that you are due, or if you got too much and need to pay it back.

I'll see if I can find the info on irs.gov.

The form is 8962 https://www.irs.gov/pub/irs-pdf/f8962.pdf

The instructions for form 8962
https://www.irs.gov/pub/irs-pdf/i8962.pdf The chart is Table 2 on Page 9.
__________________

__________________
Married, both 65. DH retired June, 2010. In the before times I had a pleasant little part time job.
Sue J is offline   Reply With Quote
Old 01-25-2020, 03:42 PM   #3
gone traveling
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 4,218
Just comparisons the second lowest cost plan vs what your actual plan premiums "Should" be, then how much the ACA gave you towards it.

So the premium YOU Paid was Colum A minus Column C. If you did not get a subsidy your Premium would have been all of Column A.
ShokWaveRider is offline   Reply With Quote
Old 01-25-2020, 03:45 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2009
Posts: 5,498
The monthly premium shown in Form 1095, Column A, may be lower than what your unsubsidized premium was because your actual premium may have included an amount which paid for items in your policy beyond the federal minimum. This happened with me. Apparently, my state required some items the Feds didn't require.


Column B is the Second Lowest Cost Silver Plan (SLCSP). This is used to help determine the amount of the premium subsidy you are entitled to.


Column A's amount gets copied to tax form 8962, Line 11a. Column B's amount gets copied to tax form 8962, Line 11b. Column C's amount gets copied to tax form 8962, Line 11f.


Tax form 8962 reconciles the amount of the premium subsidy you received with the amount you should have received. If you received too much, you have to pay the difference back (subject to a cap). If you received too little, you can use the difference to offset any taxes due or get a refund.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 01-25-2020, 05:49 PM   #5
Recycles dryer sheets
 
Join Date: Oct 2018
Posts: 87
THANKS for your responses. Much appreciated!!
Eucerin is offline   Reply With Quote
Old 01-26-2020, 05:33 PM   #6
Recycles dryer sheets
NoMoreJob's Avatar
 
Join Date: Feb 2012
Posts: 406
We've never had a 1095-A that has exactly matched the real numbers. But it comes close so to save hassle and gain quality of sleep I just report what's on the form.

I learned about the incompetence of the ACA people the year that they couldn't understand my income (retired with investment income only and no W-2) so in their infinite wisdom they cancelled our health insurance. It was the first time in my life I've ever gone without and it wasn't a good feeling. What a mess! I never could even get them to send me a 1095-A for that year (after going through the dispute process and prevailing). But I digress.

Anyway, I suggest just reporting what the form states (as long as it's close).
NoMoreJob is offline   Reply With Quote
Old 01-26-2020, 07:00 PM   #7
Dryer sheet aficionado
 
Join Date: Oct 2018
Posts: 34
Reporting what the form says can be okay most of the time. It wasn't for us last year as the SLCSP was reported as $0. We had paid the full premium upfront and were expecting a refund which we couldn't get with the SLCSP reported as $0. It took a long call to the Marketplace to get the correct number. We filed the return with the new number and all went swimmingly despite the misgivings of our accountant.
orchid55 is offline   Reply With Quote
Old 01-26-2020, 07:07 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2009
Posts: 5,498
Quote:
Originally Posted by orchid55 View Post
Reporting what the form says can be okay most of the time. It wasn't for us last year as the SLCSP was reported as $0. We had paid the full premium upfront and were expecting a refund which we couldn't get with the SLCSP reported as $0. It took a long call to the Marketplace to get the correct number. We filed the return with the new number and all went swimmingly despite the misgivings of our accountant.
Unlike previous years, the SLCSP on my 1095-A form was zero. I did get a chart from my state's exchange (NY Marketplace) which has the SLCSP for each county in my state. in 2019, unlike in prior years, I did not get any advanced premium subsidy nor did I qualify for any subsidy (i.e. went over the cliff), so I don't have to file any Form 8962 this time and can ignore 1095-A.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 02-01-2020, 08:31 AM   #9
Confused about dryer sheets
 
Join Date: Aug 2011
Location: Columbus
Posts: 3
Quote:
Originally Posted by orchid55 View Post
Reporting what the form says can be okay most of the time. It wasn't for us last year as the SLCSP was reported as $0. We had paid the full premium upfront and were expecting a refund which we couldn't get with the SLCSP reported as $0. It took a long call to the Marketplace to get the correct number. We filed the return with the new number and all went swimmingly despite the misgivings of our accountant.
My form has zeros in Column B this year; some Googling said it happens when you don’t take a premium up front (this was my first year on an ACA plan, and I have flexible self-employment income, so I figured I’d rather be pleasantly surprised at tax time than have a bill).

The Healthcare marketplace has a tax tool where you can answer a few simple questions, and it give what the actual SLCSP number should be, then tells you to use that for tax filing instead. I’ve printed out the results sheet to keep with my tax records, just in case.

https://www.healthcare.gov/tax-tool/...ium-tax-credit
__________________

kodokan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
1095-A problem broadway Health and Early Retirement 20 03-04-2017 01:12 PM
Anyone Else Get IRS letter asking for 8962 and 1095-A form (Obamacare) for 2015 tax? John Galt III FIRE and Money 8 07-13-2016 06:07 AM
Taxes: Form by form instead of interview? TromboneAl FIRE and Money 4 03-28-2016 12:03 PM
How to file 2 1095-A forms on one tax return Sue J FIRE and Money 9 02-06-2016 01:37 PM
No 1095-A from Federal Marketplace? NoMoreJob Health and Early Retirement 30 04-18-2015 01:03 AM

» Quick Links

 
All times are GMT -6. The time now is 06:21 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×