Form 1095-A

[QueenB2064]

My client's Form 1095-A has zeros in the second and third columns. ProConnect is generating errors because of that. The error message says "Form 8962 Reject: For electronic filing purposes, enrollment premiums or advanced payment of PTC must be entered on Form 8962, Part II, line 11 or lines 12 through 23. Since a shared policy allocation does not include these calculations, this will cause an electronic filing reject. This return will need to be paper filed. US - Ref #58459". 

Form 8962 Part II in ProConnect does not have Line 11 or Line 12 - 23.

How do I fix this?

[George4Tacks]

Just a guess - Zero does not have any affect - enter a negative one (-1) in those two spaces and see it that corrects the error. 

If not contact support

https://accountants.intuit.com/support/en-us/help-article/intuit-account-settings/contact-proconnect...

[QueenB2064]

Hi George4Tacks

I did some research in the Turbo Tax community and found out that if columns two and three show zeros, it means the individual did not receive any APTC i.e. no advanced premium tax credit, therefore there's no need to file Form 1095-A.

And if you really must file the form, then you should enter 1 for each month in column C. If you do that $12 will be deducted from your refund or $12 will be added to your balance due. 

[qbteachmt · Accepted solution]

Did you look up the SLCSP:

https://www.healthcare.gov/glossary/second-lowest-cost-silver-plan-slcsp/

This helps identify if their plan is considered affordable, if they are eligible for a premium credit, and separately, the issue of Advanced premium credit. Three different things.

When the second column is 0, you are supposed to look up the values:

https://www.healthcare.gov/tax-tool/#/

[QueenB2064]

Wow! Thank you so much. I used the tool and it generated the Monthly SLCSP Premiums.

[QueenB2064]

Is there a tool to calculate the third column? Or is it the difference between columns one and two? My client actually paid the amount in the first column. I saw the charges to their bank account. That means they did not receive APTC. 

[qbteachmt]

The first column is your client's premium. The second column is what is considered "affordable" in that market. The third column is the Advance premium paid on behalf of your client to their insurer. So, if they didn't get anything in Advance, there is no value there. That doesn't mean they are not entitled to a credit. That's why you work through the form for them. Example: This is done as a projection, and they don't expect to qualify. At tax time, their numbers show they do qualify. Or, the other way around: people get an Advance credit, and at tax time, it is revealed they didn't qualify. That's why they are supposed to repay.

[qbteachmt]

Oh, just to clarify: "I saw the charges to their bank account. That means they did not receive APTC."

Nope. That is not what this means.

[QueenB2064]

It's complicated. After using the marketplace tool to calculate the MSLCSP and entering it in column B and leaving column C as zeros as shown on the 1059-A, ProConnect comes up with a critical efile rejection error. If I enter the difference between columns A and B in column C, It results in excess premium for my client, and their refund is substantially reduced. I'm calling the marketplace for clarification. Thanks for your help. 

[qbteachmt]

You don't control or change if there were payments made to the insurer on behalf of the taxpayer = Advance premium credits. You don't input anything other than what you see for column C.

You don't control what those numbers should be, other than, you nearly always have to research the SLCSP for the taxpayer's input.

Have you read the ProConnect help article:

https://accountants.intuit.com/support/en-us/help-article/form-1095/enter-form-1095-proconnect/L6cmy...

Is this your first ACA form? It should have been covered in any continuing ed or updates you get for preparing taxes. If it's your first, you should take some notes.

[QueenB2064]

Hi qbteachmt,

This is not my first time filing Form 1095-A through ProConnect or other tax software but this is the first time ProConnect generated a critical error.  I filed for this particular client for the past three years exactly the same way i.e. zeros in columns B and C and ProConnect did not generate an error. I don't know what changed in the program this year. 

Anyway, I accepted the Turbo Tax community solution, filed electronically yesterday without entering Form 1095-A, and received the IRS acceptance letter. Thanks for your help.

Solution: If column C shows 0 they did not receive APTC and there's nothing to reconcile.

[TaxGuyBill]

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@QueenB2064 wrote:

It's complicated. After using the marketplace tool to calculate the MSLCSP and entering it in column B

and leaving column C as zeros as shown on the 1059-A, ProConnect comes up with a critical efile rejection error.

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Does entering the SLCSP in column B result in a credit?  If so, you are cheating your client by not filing the form (and maybe have been for the past several years).

Leave column C blank (not zero).