Received a 1095-A Health Insurance Statement while having employer Blue Cross coverage - what do I do for my taxes?

This is actually a fairly common issue, especially when transitioning from Marketplace to employer coverage. When your wife got employer insurance, you needed to actively cancel the Marketplace plan - it doesn't happen automatically even if it's the same insurance company. Unfortunately, you will likely need to repay some or all of the premium tax credits on your tax return using Form 8962. The amount you have to repay may be capped based on your household income, but since you had dual coverage and weren't eligible for the credits, you'll probably need to repay them. Your first step should be to contact the Marketplace (not BCBS) at 1-800-318-2596 to explain the situation. While they probably can't retroactively cancel the coverage, they might provide guidance on your specific situation. Also, check if your wife's employer plan was considered "affordable" and provided "minimum value" according to ACA rules. This affects your repayment obligations. Keep in mind that having dual coverage isn't illegal - it's just that you weren't eligible for premium tax credits while having affordable employer insurance available.

I went through something similar last year with my husband's insurance! One thing that helped me was using https://taxr.ai to analyze our 1095-A and 1095-B forms together. I uploaded both forms and it immediately identified the overlap period and explained what I needed to report on Form 8962. The tool walked me through exactly how to handle this on my tax return, including which boxes on the 1095-A I needed to pay attention to for calculating repayment. It also generated a letter explaining the situation that I could keep with my tax records in case of an audit. What's nice is you don't need to be a tax expert - it explains everything in plain English and tells you exactly what steps to take. Definitely helped me avoid making mistakes that would have triggered IRS notices later.

I actually tried taxr.ai after seeing the recommendation here, and it was incredibly helpful! I had a similar situation with overlapping coverage and wasn't sure how to handle it on my taxes. The tool immediately identified that I had a special circumstance during the transition month where I was technically eligible for a partial credit. It generated a complete explanation of my situation and step-by-step instructions for Form 8962. While I still had to repay most of the premium tax credits, the analysis helped me avoid repaying about $350 I was actually entitled to keep. More importantly, I now understand exactly how to explain this on my tax return and have documentation to back it up if I'm ever audited. Definitely worth checking out if you're dealing with 1095-A issues!

If you're having trouble reaching someone at the Marketplace to resolve this (which is likely because their phone lines are INSANE this time of year), I'd recommend using Claimyr to get through faster. I spent DAYS trying to get someone on the phone about my 1095-A issue last year. With https://claimyr.com they actually wait on hold with the Marketplace for you and call you when a real person picks up. Saved me hours of frustration. You can see how it works here: https://youtu.be/_kiP6q8DX5c The Marketplace representatives can sometimes process retroactive changes if you have a good explanation, but you need to actually reach someone first, which is the hardest part!

Ok I need to eat my words here. After seeing the YouTube video, I decided to try Claimyr for reaching the Marketplace about my own 1095-A issue. I was SUPER skeptical but desperate after trying to call for days. It actually worked exactly as advertised. I got a call back in about 45 minutes when they reached a representative. The Marketplace agent was able to review my account and confirm there was an error in my advance premium tax credit calculation. They're submitting a correction that will reduce what I owe by almost $1,200. Without getting through to them, I would have just paid the full amount on my taxes. Definitely worth trying if you're having trouble reaching the Marketplace. Sometimes you really do need to talk to a human to get these issues fixed.

I think an important detail being missed is checking if your wife's employer plan was considered "affordable" under the ACA. If her employer insurance required her to pay more than 9.12% of your household income for just her coverage (not including family coverage), you might actually have been eligible for some of those tax credits! You should look at her pay stubs from that time period to see how much was being deducted for health insurance. Calculate whether that amount x 12 months was more than 9.12% of your household income. If her employer plan wasn't affordable by this definition, you might be able to keep some of those premium tax credits, which would reduce how much you have to pay back.

Don't forget to also check if your state has its own health insurance marketplace! Some states have different rules and might be more flexible about retroactive adjustments than the federal marketplace. If you live in California, New York, Massachusetts, or several other states with their own exchanges, call your state marketplace directly rather than the federal one.

I'm sorry you're dealing with this stressful situation. Based on what you've described, unfortunately you'll likely need to repay most or all of the $3,899 in advance premium tax credits since your wife had affordable employer coverage available during that overlap period. Here's what I'd recommend doing immediately: 1. **Gather all documentation** - Get your wife's pay stubs from Jan-July 2023 showing insurance deductions, both 1095 forms, and any correspondence from the marketplace. 2. **Contact the Marketplace directly** at 1-800-318-2596 to report the overlap situation. While they may not be able to retroactively cancel coverage, they need to know about the error and might provide guidance specific to your case. 3. **Calculate the exact repayment amount** using Form 8962. You'll need to determine if there were any months where you were actually eligible (like transition periods). 4. **Consider professional help** - A tax professional experienced with ACA issues might be able to identify any legitimate ways to reduce your repayment obligation. The silver lining is that this is a relatively common mistake, and the IRS has procedures for handling it. You won't face penalties beyond having to repay the credits you weren't eligible for. Make sure to file your taxes accurately with Form 8962 to avoid future complications. Going forward, always contact the marketplace immediately when you get employer insurance to avoid this situation happening again.