This line will have an amount only if the taxpayer purchased health insurance on an exchange such as Covered California, and if the advance premium tax credit (APTC), aka “subsidy”, was less than the taxpayer was entitled to. (Typically, that’s when the taxpayer had less actual income in the tax year than the taxpayer told the exchange they expected to earn.) 

  • If Line 8 of Schedule 3 has an amount, an adjustment may be required to Schedule A.
    • If the taxpayer itemizes, and includes medical expenses, and those medical expenses include premiums paid for health insurance purchase on an exchange such as Covered California (these will be listed in the “monthly enrollment premiums” column on the Form 1095-A), then the amount entered on Schedule A must be reduced by the amount on Line 8 of Schedule 3. 
      • This is an exception to the rule that only income received, and expenses incurred within a calendar (tax) year can be included on the return for that year.
  • For details about how this credit is calculated, see the section Schedule 2, Line 2 - Excess Advance Premium Tax Credit Repayment, page 98.

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