1095-A mistake (No SLCSP)

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RobG
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1095-A mistake (No SLCSP)

Post by RobG » Sun Mar 15, 2015 4:39 pm

Hello,
Last year I got my 2014 health insurance through the marketplace. I chose Bronze and elected not to get the tax credit because I figured my salary would exceed the limit. As it turns out I didn't make much money in 2014 so I should qualify for a tax credit. However, when I enter my 1095A info into Turbo tax I don't get a tax credit (I can clearly see why this is when I look at form 8962)

Here is the problem: column B (cost of Second lowest Cost Silver Plan) of the 1095A is $0, however it should be $809/month using the number from the healthcare.gov. When I enter $809/month I get a whopping big tax credit. However, if I use $809/month it won't match my 1095A so I assume the IRS will eventually want the tax credit back + penalty.

I think the root of this issue is that I estimated too much income when I signed up for insurance. This disqualified me from a tax credit. But as I mentioned earlier, I made much less than my estimate.

I tried to get a corrected 1095A but the folks at Healthcare.gov said it was correct. I couldn't get a straight answer out of the folks at Healthcare.gov on whether or not I can enter this $809/month and receive my credit. Does anybody know?

As always, linked to official IRS documents appreciated.

Thanks,
rg
Stay thrifty my friends.

furwut
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Re: 1095-A mistake (No SLCSP)

Post by furwut » Sun Mar 15, 2015 5:09 pm

I ran into this when doing my taxes as well. My understanding, from the information in Turbo Tax, is that data for column B (SLCSP) is present on your 1095-A when you have received an Advanced Premium Tax Credit (APTC). If you haven't received an APTC and believe you are eligible for a tax credit now you are supposed to enter the amounts in. You can find SLCSP information on your health care exchange.

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Sun Mar 15, 2015 5:17 pm

furwut wrote:I ran into this when doing my taxes as well. My understanding, from the information in Turbo Tax, is that data for column B (SLCSP) is present on your 1095-A when you have received an Advanced Premium Tax Credit (APTC). If you haven't received an APTC and believe you are eligible for a tax credit now you are supposed to enter the amounts in. You can find SLCSP information on your health care exchange.
Just so I understand, you are saying I should just enter the $809/month in Turbo Tax? How did you figure that out?

By the way, for the people going through this the SLCSP is at https://www.healthcare.gov/taxes/tools/silver/
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furwut
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Re: 1095-A mistake (No SLCSP)

Post by furwut » Sun Mar 15, 2015 5:53 pm

How did you figure that out?
That's what the Turbo Tax instructions told me to do when I clicked on the more info link for SLCSP. Initially I didn't enter this column of data as it was blank on the 1095-A I received from my exchange. During the Smart Check review in Turbo Tax it flagged this form for the blank entires under the SLCSP column. I think the instructions said I should either enter the actual SLCSP amount (obtained from the exchange) or I could enter zero.

In my case I didn't qualify for a tax credit anyway even though I went back and entered the actual SLCSP from the exchange.

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Sun Mar 15, 2015 5:58 pm

Thanks, I will look there too. I found this on the Turbo Tax site: https://ttlc.intuit.com/questions/25963 ... his-amount#

I hate going solely on that. I guess I'd like to know if the IRS uses the info on the 1095A. I looked at the IRS site and they said don't even ask them about 1095A, call the marketplace instead. The tone suggested they didn't want nothing to do with that charlie-foxtrot :D
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furwut
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Re: 1095-A mistake (No SLCSP)

Post by furwut » Sun Mar 15, 2015 6:07 pm

I have to just laugh. Here is, what I think, is the pertinent instructions from the IRS in the link you provided.
If no advance credit payments are made for the coverage, enter the premiums for the SLCSP that would apply to all individuals identified in Part II as covered for the month. Leave column B blank if no advance credit payments are made for the coverage and your state has provided a tool for determining the applicable SLCSP for the year of coverage at the time of filing the tax return.
The first sentence says put them in. The second sentence say not to. Got it! :sharebeer

furwut
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Re: 1095-A mistake (No SLCSP)

Post by furwut » Sun Mar 15, 2015 6:20 pm

Here's the Turbo Tax instruction that I saw. WE should note that this is a user not a Turbo Tax response!

Question:
how to determine price of SLCSP - I entered my 1095 A information exactly as it is shown on my form and ttax wants a value for SLCSP and I have no idea how to find that

I am stuck at smart check because there was no amount for monthly premium slcsp on my 1095-A How to continue?
Answer:
Go to the following link to look up the SLCSP premium. If your state uses the federal Marketplace, the tool at this link will give you the SLCSP premium. If your state has it's own exchange, the tool will give you a link to the web site for your state after you enter your zip code.

https://www.healthcare.gov/taxes/tools/silver/
https://ttlc.intuit.com/questions/27457 ... -find-that

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Mon Mar 16, 2015 5:15 pm

The answer at the link I posted was from a Turbo Tax employee that seemed to be part of the ACA team (which doesn't make it necessarily correct advice!).

Here is the question
I've received my form 1095-A but column B (Monthly Premium Amount of Second Lowest Cost Silver Plan (SLCSP) has a zero amount in this. How do I figure this amount?
And the answer
Hi - this is a great question because it can potentially save you some money. You do need to find the second lowest cost silver plan for your area. Late this past week, the Marketplace posted a tool to help you do that. You can access it here. https://www.healthcare.gov/taxes/tools/silver/ . Enter your information, you'll get the SLCSP data, and enter it in Column B of the 1095-A screen. We are updating TurboTax this coming Wednesday night with this information.
I am still very concerned about the implications of the data entered for the 1095A not matching the one they sent to the IRS.

Has anyone else uncovered any more information on this?
Stay thrifty my friends.

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dodecahedron
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Re: 1095-A mistake (No SLCSP)

Post by dodecahedron » Mon Mar 16, 2015 5:47 pm

RobG wrote:
I am still very concerned about the implications of the data entered for the 1095A not matching the one they sent to the IRS.

Has anyone else uncovered any more information on this?
It is perfectly obvious to the IRS that if the column labelled "cost of SLCSP" is zero on your 1095-A, that can't possibly be right. There is no place in the country where the cost of the SLCSP is zero. The IRS is going to have to figure out a way to get the correct data for people in your situation. They are NOT going to ask the state exchanges to send people in your situation a new 1095-A with that column filled out. (For one thing, the exchange where you bought your policy may not know which SLCSP is relevant to you, because they don't have information about your income and therefore they don't know whether some of your family members might have qualified for Medicaid/Child HealthPlus or something similar.)

My advice to you is to do what VITA volunteers have been told (by the IRS) to do: use the tool on HealthCare.gov or your state exchange (depending on where you bought your policy) to determine the correct amount for the SLCSP for your family size in your particular area. (Note that if you and your spouse purchased family coverage covering yourselves and your children but the children *could* have qualified for ChildHealthPlus/Medicaid on their own, then the relevant SCLSP is not the cost of a family plan but the cost of a plan covering the adults alone, so you have to be careful in determining the relevant family size when selecting the SCLSP from the tables.)

Then be prepared to wait (if you are expecting a refund). The National Taxpayer Advocate says that the IRS has been holding up returns with ACA subsidies since the beginning of filing season. It will eventually get things sorted out. The good news is that if it takes longer than 45 days past April 15 (or the date you filed your return, whichever is later), the IRS will pay you interest on your overdue refund. They are currently paying 3% interest.

mlipps
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Re: 1095-A mistake (No SLCSP)

Post by mlipps » Mon Mar 16, 2015 6:51 pm

Your 1095-A does not have a mistake. This is normal since you didn't take the tax credit. See here for evidence:

https://www.healthcare.gov/taxes/tools/

Click the link that says "See if you need to use this tool to find your second lowest cost Silver premium".

"You didn’t apply for financial assistance when you filled out your 2014 Marketplace application, and want to find out now if you qualify"

Don't stress about the 1095-A not matching what you enter on the 8962. This is expected in your case.

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Mon Mar 16, 2015 8:45 pm

Thanks mlipps, I'm on board now. I was confused by the healthcare.gov page the first two dozen times I looked at it, but after working it out with you guys it is starting to make sense. They should be more specific in that you should enter the data obtained from that tool if the data in the 1095A is incorrect (even if the form is "correct").

I don't know why they put a zero in column B. The cost of the plan has nothing to do with my decision to not take advanced payments.
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andrea
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Re: 1095-A mistake (No SLCSP)

Post by andrea » Mon May 11, 2015 8:11 pm

My 1095-a said zero for slcsp I guess because I didn't take a subsidy (thinking I would get it at tax time like they promised, lol). I followed the advice in this thread (read it elsewhere too). I estimated slcsp from the healthcare.gov tool and used that number when completing my 8962 and 1040. It made my refund $2000 higher. Now I got a letter from the IRS that says my 1095-a doesn't match what I put on the 8962.

I called the marketplace. They are as stupid as ever. They said the SLCSP is supposed to be zero if you did not take a subsidy. I told them that is not what it says and that doesn't even fit the definition of SLCSP. They are claiming my 1095-a isn't one of the incorrect ones.

I'm not sure what to do now. I tried the healthcare.gov SLCSP tool again this time it gave me an even higher number I don't know why that would be but we did not make much and if I put zero for SLCSP on my tax return it gives me a zero subsidy - that can't be right.

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Mon May 11, 2015 8:23 pm

Yea, me too, sort of. They requested my 1095 before they would process my tax form. We'll see where that goes. Perhaps they won't give me the tax credit. Oh well, I had to pay full price in the old days when I made even less.
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andrea
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Re: 1095-A mistake (No SLCSP)

Post by andrea » Tue May 12, 2015 8:00 pm

Thought I would let you know what I am trying, I don't know if I will get anywhere, but thought it might help you.
I called healthcare.gov AGAIN, this time the rep actually seemed to understand that if SLCSP is zero, it is not possible to get a subsidy. She SAID she is sending my 1095-a to an accelerated team with a description of the problem. She SAID I will get a call in 5-7 days with hopefully an amended 1095. I also spoke with the IRS. He said even if I don't get an amended 1095 I should fax the 1095 to the IRS with a letter describing the problem. He also said I should include a print out of the healthcare.gov tool that I used to calculate SLCSP and any other proof. If the processing department does not side with me, he said I should call the IRS again. I guess they can't look into the problem until the return processing is over. I'll let you know if I ever get that call from healthcare.gov

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Fri May 15, 2015 7:46 pm

Thanks for letting us know what is happening. I'd be interested in knowing how this turns out.
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dodecahedron
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Re: 1095-A mistake (No SLCSP)

Post by dodecahedron » Fri May 15, 2015 8:02 pm

RobG wrote:Yea, me too, sort of. They requested my 1095 before they would process my tax form. We'll see where that goes. Perhaps they won't give me the tax credit. Oh well, I had to pay full price in the old days when I made even less.
I got one of those letters from the IRS as well. I sent a copy of my 1095-A (which of course said 0 for the SLCSP) but I also sent a table that my state exchange had enclosed along with my 1095-A which showed the SLCSP in every county in my state (including mine) broken out by type of household (e.g., individual, couple, parent with child(ren), etc.) My state exchange had included a letter explaining that those of us with zeros in the SLCSP on our 1095-A should use the table to figure out our SLCSP.

The IRS letter said it would take 6 to 8 weeks to process. The good news is that once they go 45 days past April 15, they must pay 3% interest on delayed refunds. I can wait.

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Fri May 15, 2015 8:12 pm

Yeah, with the 1095-A I also sent in a copy of the SLCSP analysis from the healthcare.gov website. I don't expect this to go smoothly.
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dodecahedron
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Re: 1095-A mistake (No SLCSP)

Post by dodecahedron » Sat May 23, 2015 11:10 am

Well, it went smoothly and (relatively) quickly for me.

April 28: I responded to the IRS letter requesting documents by mailing my 1095-A and a copy of the table of SLCSP costs provided by my state exchange to the IRS "ICO rejects team" in Covington Kentucky, who are apparently charged with the responsibility of processing the returns kicked out by the system. On the SLSCP table, I helpfully highlighted the row with my county and the column with my household composition. As requested, I also enclosed a copy of the IRS letter to me.

May 23 (today): My expected refund is showing up as a direct deposit to my bank account.

I was pleasantly surprised by the speed. The letter had said to allow "6 to 8 weeks" for processing. This wound up being less than 4 weeks from when I mailed in the requested documents.

On the other hand, I don't know why it took them until April 24 to send me the letter requesting additional information. The IRS originally "accepted" my efile on March 2 (the same day I submitted it.) Obviously it was well before April 24 that they determined they would need additional information to process the return. My guess is that they were hoping to get and process that information as a batch electronic transmission directly from my state exchange for all taxpayers in my situation, and it was only after they determined that was not going to happen within any reasonable timeframe that they decided to send out letters to individual taxpayers requesting the information to be submitted for manual processing.

I believe the interest rate clock would have started running May 30, (i.e., if the IRS had not sent my refund by next Saturday, they would have been required to pay interest on the delayed refund from that point on) so that might have provided some incentive for speedy processing. The current interest rate on delayed refunds is 3%. :greedy

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Sat May 23, 2015 11:53 am

They haven't deposited mine yet, but your experience is encouraging.
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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Thu May 28, 2015 4:59 pm

Well, my refund showed up in my bank account today.
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billh
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Re: 1095-A mistake (No SLCSP)

Post by billh » Wed Nov 29, 2017 3:54 pm

Ugh. I just figured out that I have been cheated by Healthcare.gov for the past two years, due to their failure to include the SLCSP on form 1095-A. I have been talking with "supervisors" at Healthcare.gov who don't seem to get the fact that I can't fill out the 8962 form properly without the SLCSP. I have amended my taxes and am sending them to the IRS, along with documentation re: the appropriate SLCSP.
I would love some stories about how this all was cleared up by the IRS and refunds received!

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Re: 1095-A mistake (No SLCSP)

Post by KnottyPine » Fri Mar 01, 2019 12:44 am

First time ACA user with same issue on 1095 A and H and R Block software. Will see how return goes with healthcare.gov tax tool number.

RLYL86
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Re: 1095-A mistake (No SLCSP)

Post by RLYL86 » Wed Jan 08, 2020 2:38 pm

I just received my 1095-A for 2019 and this issue is still occurring after all this time. I'm wondering if anyone who filed in more recent years still had the trouble with the IRS claiming the form doesn't match what was filed, that the original posters experienced.

mlipps
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Re: 1095-A mistake (No SLCSP)

Post by mlipps » Thu Jan 09, 2020 10:26 am

RLYL86 wrote:
Wed Jan 08, 2020 2:38 pm
I just received my 1095-A for 2019 and this issue is still occurring after all this time. I'm wondering if anyone who filed in more recent years still had the trouble with the IRS claiming the form doesn't match what was filed, that the original posters experienced.
My point from above still stands--this is not a mistake, it is expected. I've been doing taxes for low income families at a VITA site since 2012 and we have seen this issue since the beginning of the ACA. Just use the healthcare.gov tax tool to retrieve the correct value & include it on your 8962.

RLYL86
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Re: 1095-A mistake (No SLCSP)

Post by RLYL86 » Thu Jan 09, 2020 11:22 am

mlipps wrote:
Thu Jan 09, 2020 10:26 am
My point from above still stands--this is not a mistake, it is expected. I've been doing taxes for low income families at a VITA site since 2012 and we have seen this issue since the beginning of the ACA. Just use the healthcare.gov tax tool to retrieve the correct value & include it on your 8962.
Thank you for the update. I phrased that a little unclearly. I was mostly just wondering if I'd have to do the back and forth letters with the IRS regarding the mismatch and have my refund delayed. Do you know if this has happened with the people you've been assisting?

mlipps
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Re: 1095-A mistake (No SLCSP)

Post by mlipps » Thu Jan 09, 2020 1:05 pm

RLYL86 wrote:
Thu Jan 09, 2020 11:22 am
mlipps wrote:
Thu Jan 09, 2020 10:26 am
My point from above still stands--this is not a mistake, it is expected. I've been doing taxes for low income families at a VITA site since 2012 and we have seen this issue since the beginning of the ACA. Just use the healthcare.gov tax tool to retrieve the correct value & include it on your 8962.
Thank you for the update. I phrased that a little unclearly. I was mostly just wondering if I'd have to do the back and forth letters with the IRS regarding the mismatch and have my refund delayed. Do you know if this has happened with the people you've been assisting?
I have not heard of this happening. It's not a mismatch, it's an intended (albeit aggravating) set up so I wouldn't foresee any issues, but can't say for certain that that's the case.

RLYL86
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Re: 1095-A mistake (No SLCSP)

Post by RLYL86 » Thu Jan 09, 2020 3:58 pm

mlipps wrote:
Thu Jan 09, 2020 1:05 pm
I have not heard of this happening. It's not a mismatch, it's an intended (albeit aggravating) set up so I wouldn't foresee any issues, but can't say for certain that that's the case.
Thank you, it's very much appreciated! I will file with those figures in column b and report back if it doesn't go smoothly.

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RobG
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Re: 1095-A mistake (No SLCSP)

Post by RobG » Sat Mar 21, 2020 11:17 am

Since it is tax season I'll bump this back up. I planned on a good income year so I didn't take the premium tax credit (PTC). Therefore, column B on the 1095 was zeros. It turns out I made very little and was eligible for the PTC so I had to enter the SLCSP manually in turbo tax. If I hadn't I would have lost $12,000!

If in doubt make sure you check line 9 of schedule 3.

I guess the answer is to take the tax credit every year, but if you do that and deduct insurance from your income it does it incorrectly in the region above the brick wall until your income reaches the level where the full deduction is made. I guess check it with SLCSP = 0 and SLCSP = actual value and see which one gives the higher rebate, and make sure it is the correct value. I wish Turbo tax would do this for me!
Stay thrifty my friends.

natureexplorer
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Re: 1095-A mistake (No SLCSP)

Post by natureexplorer » Mon Apr 13, 2020 1:48 pm

If the advance premium tax credit is $0, the Marketplace automatically (and incorrectly) specifies $0 for the SLCSP premium on the 1095-A form. They have been doing it like that for years and many tax filers don't realize it and are owed money by the IRS without knowing it because they blindly copy the info from the 1095-A form into their tax software.

Meanwhile, manually correcting the SLCSP numbers increases the chance of a time-wasting audit and having to correspond back and forth with the IRS significantly.

The easiest way around this is to always estimate your income when applying for a Marketplace plan in a way that means you get at least a small premium tax credit so that the Marketplace issues a correct 1095-A form.

furwut
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Re: 1095-A mistake (No SLCSP)

Post by furwut » Tue Apr 14, 2020 6:15 pm

While the exchange doesn’t send the SLCSP figure to many taxpayers they do send it to the IRS. How do I know? 2 years ago after looking up the SLCSP on my exchange website instead of $xxx6.xx I entered $xxx8.xx in my taxes. Easy mistake to make for those of us with astigmatism and reading tiny print off a computer screen.

Being $2 off the IRS flagged my return and so began a 7 month correspondence with them to get everything straightened out.

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