I am unemployed, and my wife if fully disabled. I estimated last years income hoping long-term unemployment would be reinstated, but it was not and my unemployment ended in the spring.
So I overestimated my income based on my wife’s disability and unemployment. Yet, now at tax time, … I use the tax slayer services… It states I need to return $600 of the subsidy. Estimated income was $32000… Actual is $19000 less standard $12000 deduction… I did not have coverage first 4 months of 2014, but used short term gap exemption code B.
I was expecting perhaps some of my out-of-pocket may be reimbursed… Not that I owe $600 overpayment of the subsidy.
You will want to take exemption CODE "G" for not having coverage during open enrollment. CODE "B" is for a short coverage gap of less than 3 months. CODE "G" covers you as long as you applied during open enrollment and then enrolled in a Marketplace plan.
If your actual income was lower then you should be getting more tax credits back, not less. Income used is Modified Adjusted Gross Income, which is income after most deductions (with some specific deductions added back in). Can you clarify your projected income versus actual income?