Why did my refund amount lower when I added my 1095 a?

RaeRae

I applied for health insurance through the marketplace, I received a form saying that I had gotten insurance. I did not have to pay any premiums for this insurance I did not receive any premiums for this insurance. I never used this insurance, because no doctors accept this insurance either.

So why has my refund lowered almost $400 for premiums I never paid into and premiums I never used or received??

JanaA

Hello RaeRae! When you enrolled in marketplace health insurance, the government paid advance premium tax credits (APTC) directly to your insurance company on your behalf throughout the year. This is why you didn't have to pay premiums yourself.

The form you received (Form 1095-A) shows these advance payments that were made to your insurer. Now at tax time, the IRS reconciles whether you were actually eligible for those credits based on your final income for the year.

If your income ended up being higher than estimated when you applied, or if there were other eligibility changes, you may need to repay some or all of those advance credits. The government paid them on your behalf, and now they're adjusting your refund to recover that amount.

The $400 reduction in your refund represents the repayment of advance credits that were paid to your insurer during the year. Whether you used the insurance or not doesn't affect this reconciliation. This is based on your actual eligibility for the credit.

I suggest you Review your Form 1095-A and Form 8962 to see how the repayment amount was calculated. Compare the income you reported to the Marketplace with your actual income for the year.

If you believe the 1095-A is incorrect (for example, if coverage dates or amounts are wrong), contact the Marketplace to request a corrected form.