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Marketplace insurance

carolina
Level 1

Client received a CA form 3895 for marketplace insurance and an IRS form 1095-A.  Input both forms and the result is a refund from the state of CA for $4800 and a payment due to the IRS of $8686. The amount due is the total of C Part III on the above fed  form, and on the same line on the state form is $52. The client had insurance from the state marketplace for 8 months until going on medicare.  Not sure what to do with this.  Thoughts, help?

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pamdory
Level 7

You may want to set that one aside and wait for Lacerte to update.  The American Rescue Plan removes the repayment of Advance Premium Credit for 2020.  The California program uses 600% of federal poverty level to calculate the credit vs the federal 400%, which makes a significant difference.

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pamdory
Level 7

You may want to set that one aside and wait for Lacerte to update.  The American Rescue Plan removes the repayment of Advance Premium Credit for 2020.  The California program uses 600% of federal poverty level to calculate the credit vs the federal 400%, which makes a significant difference.

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rbynaker
Level 11

Step 1:  Stick it on a shelf and come back to it after the IRS has issued guidance on last week's law eliminating APTC repayment for 2020 AND after Lacerte has updated their programming accordingly.

Step 2:  After completely step 1, come back and post here again.  We will have forgotten all about this as soon as it drops off page 1 of the community.

Rick

PS: I'm not in CA and don't have any of these but my understanding is the Fed uses 400% of FPL for "the math" and CA uses 600% of FPL.  That's likely why you're seeing such a stark difference.

abctax55
Level 15

What @rbynaker & @pamdory  just said.

There's some real wonkiness going on with the CA 3895, generating some HUGE numbers both in what's owed and in refunds.   

I'm still trying to decide if Lacerte is handling it correctly.

The shelf idea is a good one 🤣

 

 

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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rbynaker
Level 11

The shelf idea is a good one 

Better put a label on that shelf and call it "Orca".  'Cause we're gonna need a bigger shelf!

abctax55
Level 15

Rick.... you should quit your day job.   🤣

THAT's great tax season humor.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches