Paying Back Advanced Tax Credits (Subsidies)
In the chart, it showed if your income is less than 200% fpl (one in household) you would need to pay back up to 300 dollars in advanced tax credits. Do you think this is close to 100% accurate and was it based on information in the obamacare act itself. I am keeping all your contact info. in my ins. folder for future use, when needing to find a quality affordable plan. I am self employed currently on my farm (ag industry is a high expense industry as a whole) and have a catastrophic only coverage plan (6000 + deductible).
Answer
Paying back advanced tax credits is based on household income (as a percentage of the federal poverty level). The repayment chart below is from the 8962 instructions from the IRS.
We are very confident that these are the repayment limits for 2014. Moving forward they are of course subject to some amount of change.
| Income % of FPL | Filing Status: Single |
Filing Status: All Other |
|---|---|---|
| Less than 200% FPL | $300 | $600 |
| At least 200% FPL but less than 300% |
$750 | $1,500 |
| At least 300% FPL but less than 400% |
$1,250 | $2,500 |
| If your year end income exceeds 400% FPL, you will have to return the total amount of Advances Premium Tax Credits you received.If you make too little to qualify for subsidies (less 100% FPL), then you owe NOTHING.That being said, if you know you are going to price out of cost assistance, make sure to update your Marketplace account. You may become eligible for a free or low-cost Medicaid plan if your state expanded Medicaid. | ||
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both my husband and I lost our jobs in 2016 in the Summer. So we got Obamacare for October thru December. Now we have to pay the subsidy back. We still don’t have full time jobs, and are still on Obamacare, but now I have an IRS bill of $3,456, Now I can’t really afford this and my insurance. Will this happen again next tax season?