Question: Upon reviewing Nathan and Tabitha’s joint tax return, you notice the premium tax credit (PTC) they typically qualify for has not been calculated by the software as expected. The couple are budding entrepreneurs and purchased health insurance through a federally facilitated health insurance marketplace. They did not receive any advance premium tax credit (APTC) payments throughout the year. After verifying that the pair otherwise qualifies for the PTC, you rescan the Form 1095-A, Health Insurance Marketplace Statement, they presented and observe that Form 1095-A, Part III, Column B, is blank. Could this be why the software isn’t generating the PTC, and, if so, how can this be fixed?
Answer: Yes, the second lowest-cost silver plan (SLCSP) is a key component in calculating the PTC, along with income and family size. When APTC is not paid for coverage, the SLCSP premium on Form 1095-A, Part III, Column B, may be incorrect, reported as -0-, or left blank, as is the case with Nathan and Tabitha’s form. The taxpayers are directed not to request a corrected form. Instead, the health coverage tax lookup tool located at https://www.healthcare.gov/tax-tool/#/ will determine their correct SLCSP premium. This figure must then be manually entered/adjusted on Form 1095-A, Part III, Column B. You easily assist them with this process in the office, and after doing so, the PTC is now properly appearing on their return.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.