Author Topic: Form 1095 Incorrect, what to do?  (Read 343 times)

FrugalZony

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Form 1095 Incorrect, what to do?
« on: October 17, 2020, 06:12:32 PM »
We just received a request from the IRS to send in forms 8962 and 1095-A, both related to ACA premium tax credits for 2019

We did not have ACA coverage in 2019 at all
We started an application back in 2018, but never signed up, therefore we never paid anything.
Our marketplace account shows it was started, but not completed

When checking the marketplace account I saw that we actually DO have a 1095 for 2019 and that form actually shows a premium credit for January of 2019 only
Zero for all other months

However we never paid any premium, had no coverage etc.
This is just weird.

What do I do now?
Do I send the incorrect form to the IRS with a statement that it's not correct.
Do I send a statement to the IRS that we never had insurance in 2019 without sending the form?
Should I try to get it fixed with marketplace first and just tell IRS that we are communicating with marketplace?

This is so odd.

We did have coverage in 2018 and 2017, but none of the premium credit numbers match up with what we supposedly received in January 2019

Does anybody have any advice?
Thanks for reading!

secondcor521

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Re: Form 1095 Incorrect, what to do?
« Reply #1 on: October 17, 2020, 08:00:40 PM »
You've received an incorrect 1095.

I believe if you receive an incorrect 1095, the recommended course of action is to contact the issuer of the 1095 (your state ACA marketplace people) and get them to issue you a corrected 1095.

If they've already issued you one and they shouldn't have at all, well, that's a weird one, but they still should know how to correct it.

Once they've corrected it the IRS won't need you to submit the form 8962.  You may have to write them a letter to that effect to respond to the IRS request.

(If you had received ACA premium tax credits, you'd receive a 1095 and file a form 8962 with your tax return.  You don't file any 1095s with your tax return.)

FrugalZony

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Re: Form 1095 Incorrect, what to do?
« Reply #2 on: October 17, 2020, 10:16:34 PM »
You've received an incorrect 1095.

I believe if you receive an incorrect 1095, the recommended course of action is to contact the issuer of the 1095 (your state ACA marketplace people) and get them to issue you a corrected 1095.

If they've already issued you one and they shouldn't have at all, well, that's a weird one, but they still should know how to correct it.

Once they've corrected it the IRS won't need you to submit the form 8962.  You may have to write them a letter to that effect to respond to the IRS request.

(If you had received ACA premium tax credits, you'd receive a 1095 and file a form 8962 with your tax return.  You don't file any 1095s with your tax return.)

Thanks for your response secondcor521!!

After I posted here, I called the marketplace hotline and was amazed that somebody answered.
The guy said we were "auto enrolled" and he cannot change the 1095, but after some probing , said we could file an appeal.
We filled in 8962, based on current 1095 and wrote a letter to explain what happened, just so we don't miss the response deadline given by the IRS.
I will send that registered mail on Monday and then we'll wait and see what happens.

But from what it looks like the insurance pocketed the subsidy and will get away with it without having to provide services.
Wondering to how many cases that has happened that noone caught.

I am especially surprised because we got about a gazillion emails saying we'd lose coverage if we don't log into marketplace right now and enroll.
And then bam, they "auto enroll" us? Weird, weird, weird!