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Here is my predicament:
Divorced taxpayer has a pre-teen son, who lives with her and is properly taken as a dependent on the 1040. Taxpayer gets her insurance through the Exchange, and received a Form 1095-A listing only herself as a covered individual. Son is covered elsewhere for insurance.
Because of an increase in pay and extra hours worked, taxpayer needs to repay the Premium Credit given to her. On line 1 of Form 8962, ProSeries lists the family size as "2", even though only 1 individual is covered through the Exchange. Because of this, the Repayment amount is listed as $3,000, instead of the $1,500 repayment limit. (Taxpayer is below 401% of poverty level.)
I called the IRS about this and they agreed that the repayment amount should be $1,500 instead of $3,000, since only one household member is on the Exchange. (Yes, I was VERY surprised to reach a person at the IRS on the phone, and that they were able to give a complete answer!!)
What do I need to do to get Form 8962 to calculate the penalty for only one individual and not 2??
Thanks for your assistance
Michael Gilligan
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The family size is how many people are listed on the tax return, not how many people are covered.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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When you filled out the 1095A did you list only the tax payer as covered?
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How do I get the program to calculate the Repayment Credit on only the one individual covered under the plan? It is currently calculating the Credit at $3,000 (for 2 people) instead of $1,500 for one person.
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Yes. There is no mention of the son on the 1095-A .
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@TaxGuyBill can probably help here the most.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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The Family Size is two. That is the number of people on the tax return. In most cases, that INCREASES the credit and/or REDUCES the repayment.
That has nothing to do with the repayment limit. The repayment limit is based on Filing Status. If the taxpayer is filing as "Single", the limit is $1500. If it is anything else (for example, Head of Household), the limit is $3000.