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Advanced Premium tax credit

taxesbydot
Level 3

Client moved from one state to another mid year. He did notify the marketplace but they continued coverage and the monthly advance payment of the premium tax credit. For the months he was no longer in OR do I simply change the SLCSP to 0? This will result in his having to repay part of the advance premium tax credit.

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4 Replies 4
TaxGuyBill
Level 14

When he moved, did he have health insurance elsewhere?

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taxesbydot
Level 3

No, no other coverage.

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TaxGuyBill
Level 14

That's an interesting situation.  I'm not quite sure of the answer.  I vaguely remember reading some guidance about it years ago, but I don't remember what it said.

You situation is that the Marketplace does not have ANY SLCSP for your client's new zip code (because he moved out of State).  I don't remember what the rules are for that.

Was the health insurance used after he moved?  If not, the taxpayer may try calling the Marketplace and point out to them that he CANCELLED the policy, and they should issue a new 1095-A to show that.  I suspect that would be an uphill battle, and it may take a considerable amount of work and effort to try to convince the Marketplace to do that.  That is the best and most correct way to do it.

Otherwise, I might just leave it as-is, unless it creates additional credit for the taxpayer.

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taxesbydot
Level 3

I cannot find anything other than it may affect the credit. If I leave it as is, it does create an additional $4 credit (but this is due to rounding). I think I would adjust for that so the credit does not increase.

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