Hi,

I am now filing my 2014 taxes, I know this is late but hoping with the refund owed I won't be penalized or fined. I am single with no dependents.

I started off 2014 as unemployed and not earning any ages. I was on unemployment in 2013 but it ended in December 2013.

In 2014 I signed up in Washington State on the Exchange. When I reported my income as 0 because I was unemployed I was put on Medicaid and not charged any payment.

In September 2014 I was able to finally find a good job with good pay. I again reported my income and I was taken off Medicaid. I paid the exchange what it billed me.

Now end of year I had earned around $38,000. I received the 1095-A form which only shows coverage for the periods I had the exchange. But not the period when I was on medicaid because of 0 incomes.

Now how do I file my taxes to show coverage for the missing months? also do I owe any money/penalty because my end of year income was around $38,000? I am Single with no dependents.

I have used the automated TaxAct software but I don't think that is working to consider the case when one was on medicaid for part of the year. Given I had insurance throughout the year it does not ask me to pay any shared responsibility even though I only paid 3 months of insurance for myself when I had income.

thank you,

Now end of year I had earned around $38,000. I received the 1095-A form which only shows coverage for the periods I had the exchange. But not the period when I was on medicaid because of 0 incomes. ==>>>>>> correct. Aslongas you were enrolled in Medicaid, then you do not receive a 1095. 1095-A is absolutely required as you received an Advanced Premium Tax Credit;as you can see, similar to a W-2, your 1095-A is one of the things that will determine the amount of taxes you will pay or the refund you receive. You?ll use it to fill out IRS Form 8962. Since you bought health insurance through the government health insurance marketplace in 2014, you have received Form 1095-A in the mail .The Form 1095-A is only issued for Qualified Health Plans purchased through WA State of Health at the Bronze, Silver, Gold and Platinum levels.


Now how do I file my taxes to show coverage for the missing months?=====>> I guess the Medicaid will go back 9 months from the date of coverage and pay any outstanding medical bills so that would, in my mind, close any gap for those months. You?ll need Form 1095-A to complete/file IRS Form 8962 for Premium Tax Credit . form 8962 is required as you received the credit through advance credit payments, or if you want to claim the premium tax credit. You generally qualify for the premium tax credit to help pay your health insurance premiums if you are in the low- to mid-income ranges between 100% and 400% of federal poverty level I guess.

also do I owe any money/penalty because my end of year income was around $38,000? I am Single with no dependents. =>it depends; You are eligible for the PTC only for months in which you pay your share of your health insurance premiums. If your health plan provided coverage for a month that you did not pay your share of your premium, you have to pay back the PTC that was paid on your behalf to the health plan for that month. you can?t predict exactly how much you?d make in 2014. So you made the best estimate you could, and when you file your 2014 income tax return, the amount is reconciled with the tax credit you should receive based on your actual income for the year.
If you incorrectly estimate your income, you may receive a bigger or smaller tax credit than you were entitled to. If you were entitled to a larger credit, you will get that money back. If you qualified for a smaller or no credit, you may have to pay back some or all of the credit.
If you don?t like the possibility of having to pay back money at the end of the year, you usually may pay your entire premium yourself during the year.
That way, you would receive your entire credit as a refund when you file your income tax return, provided you were entitled to one.


You can check it with the website here; Health Insurance Marketplace Calculator | The Henry J. Kaiser Family Foundation

I have used the automated TaxAct software but I don't think that is working to consider the case when one was on medicaid for part of the year.==>I am not familiar with the software you may need to contact t he vendor for tech help. i guess there must some code for Medicaid in the software.

Given I had insurance throughout the year it does not ask me to pay any shared responsibility even though I only paid 3 months of insurance for myself when I had income.=>you may be eligible for the credit as yu Enrolled in coverage through a Health Insurance Marketplace and Pay the share of premiums not covered by advance credit payments

do not report Medicaid as marketplace insurance. Medicaid isn?t part of the Health Insurance Marketplace established by the health care law, so you don't have to replace your Medicaid coverage with Marketplace coverage.

Thanks Wnhough,

So can I assume I don't have to report the Partial year Medicaid coverage myself explicitly on the Tax forms. And that information will be inferred by IRS or they will get that information from the Washington State?


Also are you a Tax professional in the Washington area? if so I am looking to buy Tax preparation service for previous year and 2016 where I want to setup as an LLC.

thanks

#1; Yes you do;I guess you need to indicate your exemption status in Health care individual responsibility calculation smart Worksheet in your software.As said, You?re considered covered since you had insurance through the government of Medicaid. So you need to contact the software vendor how to indicate your exemption status( Medicaid) on your 2014 return.

#2; I am not a ACA expert but I think so. you can check it with your state WA ACA market place.

#2; No not in WA area. Asfaras I know you do not file WA income tax return as there is no income tax in WA , so i guess you need to contact an IRS enrolled agent or a CPA doing taxes in your local area for more info in detail.