Need help understanding 1095-A correction with IRS Publication 974 for marketplace insurance

You're dealing with what's called the "employer offer of coverage" rule for PTC (Premium Tax Credit). The section you need in Publication 974 is "Allocation of Policy Amounts" which starts around page 24-26 in the most recent version. What's happening is that since you could have enrolled in employer coverage (that was considered affordable and met minimum value requirements), you need to adjust the SLCSP (Second Lowest Cost Silver Plan) amounts in column B of your 1095-A to zero for any month you could have had employer coverage. This effectively eliminates your premium tax credit for those months. Since you could have had employer coverage starting in January 2024, you'll need to enter zeros in column B for all months of 2024. When you do this in H&R Block, your refund amount will likely change substantially since you'll need to repay all the advance premium tax credits you received. The form isn't actually being "corrected" - your 1095-A is correct as issued. You're just indicating in your tax software that you weren't eligible for the amounts shown because you had an offer of affordable employer coverage.

After months of confusion with my 1095-A form and premium tax credits, I found this amazing tool at https://taxr.ai that saved me so much time and stress. I uploaded my 1095-A and tax documents, and it instantly identified that I had made the exact same mistake with my employer coverage timing! What I loved was how it walked me through the Publication 974 requirements step-by-step and showed me exactly where to enter zeros for column B in my tax software. It even calculated my potential repayment amount before I submitted anything to the IRS. Instead of spending hours digging through Publication 974 and guessing if I was doing it right, the tool explained everything in simple terms and gave me confidence I was handling it correctly.

I wanted to follow up on my previous comment about being skeptical of https://taxr.ai - I decided to try it with my marketplace healthcare situation since I was also confused about Publication 974 and premium tax credits. I'm actually really impressed! It immediately pointed out that I had been making a mistake with my 1095-A entries for months where I had dual coverage options. The system showed me the exact page in Publication 974 that applied to my situation (page 25 in my case) and explained it in plain English. What really helped was seeing a side-by-side comparison of what my tax return would look like if I entered the form correctly vs. incorrectly. Saved me from potentially getting a letter from the IRS later. I've already recommended it to two friends with similar marketplace insurance issues.

If you're struggling with the IRS about your 1095-A and Publication 974 questions, you might want to try calling them directly. I know it sounds terrible - I avoided it for weeks because I couldn't stand the thought of waiting on hold forever. Then I found https://claimyr.com through a tax forum and it completely changed my experience. I was in a similar situation with marketplace insurance and employer coverage timing, and I needed specific guidance. Claimyr got me connected to an actual IRS agent in about 20 minutes instead of the 2+ hours I spent on previous attempts. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with walked me through exactly how to handle the 1095-A Column B adjustments in my tax software and confirmed I was doing it right. Honestly saved me so much stress wondering if I was interpreting Publication 974.correctly.

I need to eat some crow here. After posting my skeptical comment about Claimyr, I was desperate enough with my own 1095-A situation that I decided to try it anyway. I've been trying to get clarification from the IRS for THREE WEEKS about how to handle marketplace insurance with retroactive employer coverage. Called at least 6 times and always got the "high call volume" message. Used Claimyr yesterday morning, and I got connected to an IRS representative in about 35 minutes. The agent walked me through exactly how to handle my 1095-A Column B adjustments and explained which sections of Publication 974 applied to my situation. Turns out I was calculating it all wrong, and would have owed a lot more than necessary. The agent even emailed me the specific worksheet I needed. Consider me converted from biggest skeptic to satisfied customer.

Don't forget to check if you qualify for any exemptions! Publication 974 has a section about exemptions from the requirement to have health insurance coverage (though the individual mandate penalty is $0 now, this still matters for premium tax credit eligibility). In your case, there might be a short coverage gap exemption if you were transitioning between plans. Also, depending on your income level, there are caps on how much you have to repay for the premium tax credit. Look at the "Repayment Limitation" section of Publication 974 - if your household income is less than 400% of the federal poverty line, there's a maximum amount you'd have to repay based on your income bracket. Worth checking if that applies to you!

I'm in a similar situation and H&R Block's software is so confusing on this specific issue! Has anyone tried using a different tax software like TurboTax or TaxSlayer for the 1095-A reconciliation? I wonder if they explain the Publication 974 requirements more clearly.