IRS  Premium Tax Credit  Form #8962  & FTB 3849 

is used to reconcile the APTC Advance Premium Tax Credit

subsidy with your IRS # 1040.

• What’s on this page?
  • 12 c late notice letter?
  • Publication 974 Premium Tax Credit
  • Report changes within 30 days
  • Employer or Medi Cal  eligibility makes you ineligible  for subsidies

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More Instructions

• Covered CA Video on tax forms
• See form 2210 Underpayment of tax and the instructions for more details.   
  
• Form # 8962 Instructions  HTML  *  pdf  *
• but first you need the    Proof of Coverage Form 1095 A from Covered CA
• and  B  if applicable – like if you had Covered CA part of the year and other coverage the rest of the year, from an Insurance Company, Government – Like Medicare or Medi-Cal or your Employer.
• When you are done completing # 8962, enter the calculation on line 46 and/or 69 of 1040 form.
• Schedule 1  Additional Income & Adjustments to Income
• Do you think this process is complicated?
• See what my CPA thinks.
• Colleagues explanation of how to reconcile
• I got a new job.. why aren’t I getting subsides anymore?

How to report changes

12c Letter 

Tax Return Deadline

CFR 155.305 (f) (4)
Eligibility Standards

Compliance with filing requirement.

(i) Covered CA  may not determine a tax filer eligible for advance payments of the premium tax credit if HHS notifies the Exchange as part of the process described in § 155.320(c)(3) that advance payments of the premium tax credit were made on behalf of the tax filer or either spouse if the tax filer is a married couple for a year for which tax data would be utilized for verification of household income and family size in accordance with § 155.320(c)(1)(i), and the tax filer or his or her spouse did not comply with the requirement to file an income tax return for that year as required by 26 U.S.C. 6011, 6012, and implementing regulations and reconcile the advance payments of the premium tax credit for that period.

(ii) Notwithstanding the requirement in paragraph (f)(4)(i) of this section, the Exchange may not deny eligibility for advance payments of the premium tax credit under paragraph (f)(4)(i) of this section unless direct notification is first sent to the tax filer, consistent with thestandards set forth in § 155.230, that his or her eligibility will be discontinued as a result of the tax filer‘s failure to comply with the requirement specified under paragraph (f)(4)(i) of this section.

FAQ’s

Eligibility for other health coverage MEC Minimum Essential Coverage,  makes you #ineligible for subsidies

FAQ’s

• I have coverage with “Medi Cal?” as I’m taking care of my Mom under In Home Supportive Services IHSS.  Can I keep my Covered CA subsidies APTC?
  • It’s my understanding [I’m not a CPA or Attorney] that if one has coverage or is eligible for coverage with MEC Minimum Essential Coverage, then they wouldn’t qualify for subsidies. You are mandated to report MEC to Covered CA.
    • Here’s a VIDEO to explain all the reasoning.
    • It’s a stretch, maybe you could argue that LA Care is NOT MEC, based on the huge fine they just got! See LA Times article.
• What is Minimum Essential Coverage (MEC)?
  • • For more information on what is MEC, see our webpage or  irs.gov/Individual-Shared-Responsibility-Provision
    • Your MEC may be reported to you on Form 1095-A, Form 1095-B, or Form 1095-C.

FAQ’s

How to Get an #exemption for Illness?

Here’s ways and reasons you might get penalties waived

• Read more USA Today
• Read more
  • Top Tax Defenders.com
  • IRS Website on Penalty Relief due to Reasonable Cause
• More specific information – citation for Covered CA?
  • See the rules above on duty to Report Changes within 30 days
  • If your MAGI is below 400% of the federal poverty level, there is a cap on the amount you must pay back, even if you received more in assistance than the amount of the cap. However, at higher income levels you’ll have to pay back the entire amount you received, which could be a lot.  8962 Instructions – Payback limitations
  • you have until the due date of your return (April 15 plus extensions) to make a traditional IRA contribution and deduct the amount from your taxes. Likewise for contributions to a 401(k), SEP-IRA, SIMPLE Plan, or other tax qualified retirement plan for the self-employed. You also have until the due date of your return to make a contribution to a health savings account. Moreover, you have until the due date of your return to establish a traditional IRA or SEP-IRA account if you don’t already have it.  Read more IRS Publication 590A  * Nolo – what to do if you owe subsidy repayments?

• CA Couple must pay back $13k in Advance Subsidies

  • Insuremekevin.com/irs-underpayment-payment-penalty-triggered-with-obamacare-subsidy-repayment/
  • insuremekevin.com/Polk_Covered_CA_decision
• Quicken – Intuit.

Historical