How do I report part-of-the-year ACA subsidy and calculate clawback?

[rahaparta]

This year, 2016, is the first time we (retired MFJ, over 60) filed for ACA and picked a modest Silver Plan.

Background:

For the first 90 days (Jan 16-Mar 16) we had my corporate job backed health insurance, retired end of March 2016.
We applied for ACA in late Feb and received approval for a subsidy (about 1,200/mo) starting from Apr 1 for this year.

The plan:

As I understand it, based on our MAGI number (21,500) we will have to calculate possibly a clawback for our 1040 although I will arrive very close to that number (perhaps off by 400 or 500).

Questions:

I can easily answer the question -- Did you have health insurance all 12 months = Yes.
How do I report and reconcile the monthly subsidy of 1,200 ? Does Marketplace.Gov give me a form online ? When ?
How do I report there was NO subsidy for Jan to Mar ? That health ins premium came from my paycheck, perhaps there is no need to prove that, simply a record keeping issue for paystubs, if asked by IRS ?

Last couple years, since our taxes are so simple, we just filled online 1040's using H&R Block or TaxAct for a simple federal return (no state return required).

This year was the last year we contributed to a traditional IRA and HSA since no more earned income via W2, only small annuity and interest and live off savings until FRA at 66 (file for SS benefits). Thus, we have a modest deduction for the IRA/HSA contributions that allows us to "make our MAGI about 21,500 for the year". Otherwise, only standard MFJ deductions apply and we easily arrive at 0% Tax Bracket.

Can the online simple 1040's handle the dual health insurance "evidences" and calculations to prove subsidy was honest and all is correct ?

Anything else I should be aware of but did not ask ?

[secondcor521]

You should receive a form 1095-A in the mail in the spring time.  It will have the information you need to fill out your tax return.

Part of your tax return will be form 8962.  It goes month-by-month - there is a row for January, a row for February, etc.  So for the first three months you'll reflect no subsidy and employer-provided coverage.  For the last nine months you'll put in your subsidy amount.

If your AGI is only off by $500, the adjustment should be pretty small.(*)

I don't know about all the online tax products, but Quicken and TaxAct both handle this situation just fine.

You won't need to prove employer coverage - your employer will send a form to the IRS on your behalf.

(*) As long as you're below 400% of FPL, which it sounds like you will be.

[MDM]

Last couple years, since our taxes are so simple, we just filled online 1040's using H&R Block or TaxAct for a simple federal return (no state return required).

I don't know about all the online tax products, but Quicken and TaxAct both handle this situation just fine.

Politics of the ACA aside, it is probably the most complex part of the tax code for most people's returns.  Thus it's not something I'd recommend you do by hand but as secondcor521 notes, the larger commercial programs should, with attention on your part, be able to handle this for you.

[jim555]

I used to do my own taxes but with the complexity now I do it through Turbotax.  I don't know how they expect someone to do it on their own.