Subsidy Repayment for Total Income, Not Just Months I Got Assistance?
I have been trying to sort out an issue relating to my taxes. I had Obamacare from January 2014 to July 2014. During that time my pay-rate corresponded to the subsidy that I was getting for my coverage. In July 2014 I cancelled my Obamacare plan because I became eligible to receive benefits from my employer along with a pay-rate increase. When I put my 1099-A form into my tax software for the 2014 tax year it calculated that I owed $700 for discrepancies in my subsidy. It is evident that this is happening because it is comparing my subsidy to my year end income, not my income while I had Obamacare from January to July (I have pay-stubs to back this up). I filed a tax extension because I wanted to sort out this issue (I am about to go to grad school, move, and get married, so $700 is quite dear to me). How can I have my subsidy evaluated against my income when I had the policy during the first half of the year, not my total income for the year.
Joyce
I have a similar issue. Our income (married filing joint) changed toward the end of the year. Now we owe back all of the tax credits. At the time we could not afford to pay $1200 in Health insurance so we took the full subsidy (hindsight not helping that situation). My question is:
since we technically did not get a subsidy as we are paying it all back, can we now take the deduction for health insurance premium as part of our health care costs that need to total 10% of our income so we can deduct it as part of our medical expenses??
Bob
I had no insurance in January but has Medicare for the other 22. How do I report the short term gap on 1040a?
ObamaCareFacts.com
Medicare is an insurance. So if you hold a Medicare policy or individual policy for at least one month in a day you have coverage. You would claim the short coverage gap exemption for up-to two full months you went without coverage.