Re: Form 8962

Greta · ‎01-25-2023

Client needs to repay entire ACA subsidy because his 2022 income turned to be over limit. His monthly advance payment (column 3) total is $10,236. Monthly enrollment premiums (col. 1) is $12,620. I assumed he has to repay the difference ($2384)? But it calculated $2781 instead. In truth, I never learned how to do this, mea culpa.

Just-Lisa-Now- · ‎01-25-2023

Follow the money through the 8962.

I know some people have complained lately that the 8962 wasnt computing correctly, I haven't had any returns to try it on yet though.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

TaxGuyBill · ‎01-25-2023

@Greta wrote:

Client needs to repay entire ACA subsidy because his 2022 income turned to be over limit. His monthly advance payment (column 3) total is $10,236.

If he truly needed to repay it all, the repayment would be $10,236.

However, for 2021 through 2025, there is no longer a "cliff" at 401% resulting in full repayment. If the taxpayer is above 401%, the credit is still based on a percentage of his Household Income. So that is why the taxpayer isn't needing to repay the full $10,236.

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