I qualified for a pre-tax credit with my two children. In October I remarried and my husband makes a lot more money than I do. My tax preparer says I have to repay $1500 of the pre-tax credit even though I qualified Jan-Oct. Is that correct? Why do I have to repay $1500 when my credit was only $395 and I qualified for all but two months?


If you get a tax credit in advance, and then make more income then projected or marry and thus claim more income you may have to repay based on annual income. When you adjust tax credits it takes into account marriage, and that can help avoid repayment, but it seems in your case the drastic difference could have offset things enough to make repayment necessary. You most likely were getting $395 a month and not $395 total. You should never owe more than you receive. You can check your 8962 form to see if there was an error. Check 8962 Part 5: Alternative Calculation for Year of Marriage.

Learn more about repayment limits.

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