I am a US citizen and this question is about Federal taxes.
I started my taxes and the software warns me that I'll owe about $1,000. Then I enter my 1095-A and what I owe balloons to $3,500, that is, a thousand plus the money I've gotten towards my ACA insurance. What gives, how is the subsidy something that needs to be paid back?
Any thoughts are appreciated.
Is there an ACA repayment penalty?
byu/f11twosix120720 intax
Posted by f11twosix120720
3 Comments
The subsidy is based on the income you estimated you would be earning. If you earn more the subsidy is reduced and you need to repay that money. If you still have a marketplace plan this year you need to amend your income so it will not happen again.
Of you took subsidies based on a certain income and made more than planned they will claw back what they can.
They determined you didn’t qualify for some of the subsidies that you received, so now you have to pay some/all of it back.
There are different reasons you may not have qualified.