avoid the advanced premium tax credit payback

Forum|Forum|6 years ago
February 4, 2020
7 replies
50 views

My client had the market place insurance for a few months in 2019 then found a full time job , with benefits and full health insurance coverage , how can I avoid the pay back of the premium tax credit?

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Hopefully they canceled that marketplace policy quickly so they didnt end up with a full years worth of APTC to payback.

You need to find a way to reduce their MAGI, do they qualify to make an IRA contribution?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

A

andy595Author

Level 3

Thank you Lisa ........ yes, they did cancel the policy but it does not seem fair . They made the exact salary during the 4 months at the market place that they estimated , then received a large raise when they started at the new employer that offered full benefits including health insurance , now the IRS wants $527 ( advanced premiums) back when they did everything correct.

Any suggestions beside the IRA , which was an excellent idea.

Just-Lisa-Now-

Intuit Community Champion

I agree, its not fair, its a faulty system, but its what we have to work with.

Ive seen some huge paybacks, $527 isn't too horrible. Ive heard that filing MFS might be an option and would limit payback (Im in a Community Property State, which rarely works out well MFS, so Ive never really looked into it), but with only $527 payback, Im not sure that MFS would do much either.

Thats all I got Andy, sorry. Maybe someone else has some better ideas.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Sign up

Login with SSO

Let's get you signed in

Login with SSO