Parents put me on their marketplace insurance (1095-A) without telling me now my tax return went from $225 refund to paying $4.6k. What can I do?

[stefnee]

@resjudicata Idk. Probably something higher than the maximum for medicaid.

 

[treythan123]

@sgtben Very informative... and depressing.

 

[chophaslir]

@action

Do people who get marketplace credits have to repay them on their taxes? How could that be how

Treasury loans insurance sellers money that you have to pay back to Treasury if it turns out you weren't as broke as you thought you'd be?

 

[thesecondmile]

@action I'm i5

 

[daughteroftheking84]

@tyrannosaurusradio Yeah I am filing online through H&R and I guess their system doesn't really take into account whether or not I was on it for a month vs the year. I'll go ahead and talk to a tax professional to see if I can get it resolved rather than doing it online.

 

[thewritingmommy]

@daughteroftheking84 I am pretty sure one of the questions is if you carried the same insurance for the whole year or not. Answering that no opens up a lot more questions.

 

[doctrine]

@daughteroftheking84 It has to. Something is not being entered correctly, or your parents are mistaken that you were on it for only a month.

 

[johnw87]

@daughteroftheking84 Or possibly they are charging you for the entire credit your family got for the whole year, if your income bumped the whole family group out of the income range for subsidies.

 

[melissac]

@daughteroftheking84 Also maybe try clicking through till right before filing. A few years back I took out some money out of a Roth and didn’t pay it back in due to some life challenges and when I did taxes I knew there was a penalty but when I put in the numbers H&R said I owed thousands. I shit bricks when I saw that. Put off doing the taxes trying to figure out how I would pay but when I clicked through some more it adjusted and it went back to me getting a refund.

 

[romanmediterranean]

@daughteroftheking84 If you do end up owing, IMO your parents should 100% be responsible for paying the full amount owed, plus the costs of hiring the accountant. This is their fuck up.

 

[freedom0777]

@tyrannosaurusradio Isn't what his parents did fraud?

 

[junie101]

@tyrannosaurusradio If they were on the parents, the parents would get the 1095A, not OP, so it wouldn't impact OPs taxes at all...

 

[cjohnson]

@junie101 This is the correct answer. Your parents are up to some funny business.

 

[vlaisios]

@cjohnson OP is inadvertently paying for the health insurance credits for both parents. If a one month tax credit was that high it implies his insurance was close to 10k per month. Ive never heard of anything like that for a young person only in their second year of working. He's paying the tax credit for the entire bill for all three of them.

 

[mymichelle21]

@junie101 You shouldn’t be getting so many upvotes because you are actually not correct. If you are listed as a covered individual on the 1095-a you DO have to report the 1095a on your tax return, so it’s not true to say it doesn’t impact OPs taxes at all.

How it actually works is, if everyone on the 1095a is not on the same tax return, they all have to put it on each of their returns and they can agree upon a percentage to allocate the subsidies. So OP should be able to put it on their tax return and then claim 0% responsibility, if the parents are planning on doing that.

Sounds like this tax return might be above OPs head.

 

[deanabiepepler]

@tyrannosaurusradio I'm hoping you could answer my question, my mom got enrolled in it during 2020 by our county when she got sick with covid. Somehow she got auto renewed for it during 2021,my mom wasnt aware of this decision nor that she had coverage, didn't use it once. Now they're asking for 1600 back during her tax return and she's devastated, she does not make that much to be able to pay that amount. All she has other than the 1095 is a letter from this year saying that if she doesn't send some documents her insurance will be canceled. If that's the case for this year how did they auto renew it last year. Any help would be greatly appreciated.

 

[abandonedbarns]

@daughteroftheking84 Did your tax software ask you about how to "allocate" the premiums and tax credits? You need to coordinate with your parents such that the allocation between you sums to 100%. It would be allowed, for instance, for your parents to allocate 100% to them and 0% to you.

 

[nayt70]

@abandonedbarns I’m a CPA and this is the correct answer. 100% should be allocated to them. You can do this on form 8962 part IV

 

[daughteroftheking84]

@abandonedbarns I'll try that! This sound promising. Thank you!

Edit: H&R Block's application does not give the option so I'll have to go in to a tax professional. But thank you for the tip!

 

[batman96795]

@daughteroftheking84 Yes please don't used H&R Block. They train their employees for a few weeks and then unleash them on the unknowing masses to f-up and drain the life blood out of their victims clients.