Why did inputing my 1095-A change both my federal and state negatively?
I have Health insurance through the Virginia Health Marketplace and when I input the numbers from my 1095-A the amount for both my federal and state return decreased significantly. Why am I being penalized in both federal and state?
Answers
-
If you already received premium tax credits (PTC) throughout the year (towards paying insurance premiums), its possible you may have to pay back some of the PTC depending on your income and entries from the 1095-A. This would impact Federal but I'm not sure why it would impact State tax.
https://community.freetaxusa.com/kb/articles/94-paying-back-the-premium-tax-credit-due-to-increase-in-income?utm_source=community-search&utm_medium=organic-search&utm_term=government+subsidized+
0 -
If you received Advanced Premium Tax Credits (PTC) during the year to help pay insurance premiums, it's possible you will owe Federal taxes if your income was too high. I'm not sure why State tax would be impacted.
Paying back the premium tax credit due to increase in income - FreeTaxUSA Community
0 -
Just to clarify - you don't owe Federal TAXES; you are paying back the portion of the subsidy you received to which you were not entitled.
1
