I'm a serf. A real American serf. I do all that is needed to keep a household running. I don't receive pay, or any benefits, but hey-it's a living! I'm a good serf so I applied for health insurance through the New York State of Health website. It has become quite the rabbit hole, I must say. Entrance through the Orange Oort Cloud below.
About 6 weeks later I received a premium due notice from the company to which I'd applied. Bronze level bare-bones coverage was $331. $81 a week for health insurance. That is without the subsidy. That exceeds what I spend on people food for the week. That is double what I spend on pet food for a week.(6 pooties and a pit bull woozle, who is his own story.) I'm the only person home during the week, spouse is home on weekends from his big truck. I based the expected subsidy on a slightly higher income than we expected. Spouse is a truck driver. He can drive 1200 miles and not get paid for a single mile because he wasn't under a load. New premium figure with the subsidy was about $260. I tried to find out which doctors and hospitals and specialists were "in-network providers". The only way was to ask every doctor and specialist. The company couldn't provide a list until I paid the premium. The NYS Health Marketplace couldn't tell me either. So since it was mid-December and the past 6 weeks paychecks covered road expenses and about half the household bills, I never paid the premium. NOWHERE on that site does it request you notify them if you do not purchase insurance. Which meant I was uninsured. I knew the 1040 would be another thrilling day in Figureland. I knew which forms I needed to file which always helps.
I e-filed using the same tax program I'd used since 1998. I used Pub 17, the DIY source for home preparers. Couple hours later Form 1040, Form 2106 Business Expense, Form 8965 Health Coverage Exemption, Schedule A Itemized Deductions all filled out, triple checked. Re check the next day after doing them on paper. Yep, figures are good. Right forms by Pub 17. E-file completed. Return Accepted 48 hours later. Begin waiting patiently for the refund so I can pay property taxes, both current and past due. Refund expected end of February, taxes last date to pay March 31.
Friday, March 7, I get a letter from the IRS. "According to our records, you...received the benefit of...premium tax credit. You're required to reconcile the advance payment amount ...Form 8962 Premium Tax Credit." "Contact the Health Insurance Marketplace for a 1095-A. Refer to this document to complete Form 8962. Send us a completed Form 8962...If you have questions you may call us at..." Entrance to the rabbit hole.
Monday 8 AM call the IRS, get a real human about 45 minutes later. Told him the IRS was given false information about me which has affected my filed tax form. Explained my problem of being asked to file a form which did not pertain to me, that they were in possession of wrongful information and that I had filed all the correct forms as required by law. He'd be glad to transfer me to someone who could help.... After 2 dropped transfers and 3 calls to them I finally reached someone who (successfully) transferred me to someone who could start doing something. I may have filed the right forms, but I still had to contact the Marketplace, get the 1095-A and fill out 8962 because I was eligible for the tax credits.
"I don't have a 1095-A because I never had insurance. I never paid a premium so I never used the tax credits. There is no legal way I can file Form 8962. Because I had no insurance and whoever/wherever reported I did, lied to the IRS! There is no 1095-A to be issued. I have called the state marketplace 5 times to get them to fix this, they caused the problem."
"Well, we need that 8962 to reconcile the credits, and you need the 1095 to fill out the form. Since the marketplace is probably who told us that you had insurance, they're the ones who have to fix it. They need to contact us and tell us the info is wrong. You need to write the IRS a letter explaining the situation. That may be enough. " This from the IRS agent who answered the phone. I made sure I'd heard her right by repeating the exchange back to her. I also asked her again for her IRS id number. She said that was right, just a letter to the IRS saying why I couldn't file form 8962 may satisfy... Different tunnel, same hole.
So there's a bottom to this rabbit hole and it is my job to find it. Next call was to New York State of Health. Voice Mail Menu had no option for me. Repeat the menu and pick what sounds most promising. "Expected wait time 15-30 minutes." 93 minutes later and the line is disconnected. Call back, another long wait time, then after a short explanation ,"I'll transfer you to the department who can help you" and a dropped transfer. Repeat this process four times. Quit for the day after spending 7 hours either on hold or waiting for a body to answer the ringing phone.
This morning I called NYS Marketplace and I am in Full Mom Who-Raided-the-Cookie-Jar Mode. "Someone there has filed false information with the IRS. I called this office four times yesterday, because of inept phone transfers by 4 different people. Seven hours of being on hold or endless ringing or droning repetitive muzac. What is the phone number and extension of the supervisor who will correct this error?"
After giving him the personal info I asked if there was a file or record of any calls I'd made yesterday. "Let me check...no, I don't see anything. We were having telephone line problems yesterday. What is the problem?"
I calmly, rationally, in chronological order explained the exact facts. The letter from the IRS was dated March 3 and required Form 8962 be returned along with the 1095-A in 20 days. That was fact one. Fact two: I applied for insurance through the marketplace. Key Fact Three: I did not pay any premiums. I did not use any tax credits. I did not have insurance. Someone there, in that office, sent the IRS false information. Now the correct information must be sent, by the Marketplace. I filed the correct form, 8965. Why did the IRS need a form that did not apply to me and who said it did? I asked several times if he was understanding what I was saying, if he was following me, if he was writing this down somehow. Concluded with "This Marketplace has 13 days remaining to contact the IRS, per the IRS request, to correct their error. When can I expect resolution? Why was false information released? Is there a way to prevent someone else from going through this?" His answer was slightly reassuring. "I will write a complete report on what you've said and mark it 'high priority' before I send it higher up. The reference number is...." I may call again tomorrow to find out what progress has been made.
I have a draft letter for the IRS. It needs to be edited one more time for clarity and conciseness. I have a letter from the insurance company stating that my application has been withdrawn due to non-payment of premiums. Those 2 will be faxed to the IRS tomorrow. I filled out Form 8962 to the best of my ability without a 1095-A or a premium payment amount or tax credit amount. If they still insist I send it then I will send it. Along with a note explaining the "N/A" or "0" entries.
Five hours today, seven yesterday and I'm still going down the rabbit hole. Same tunnel or different-who knows? For now I'm on a ledge enjoying a mugga Irish Coffee. I haven't made any threats, nor cussed, nor screamed at anyone. Exasperated sighs and moans of frustration, yes.