Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Premium Tax Credit

John66
Level 2

I have a client that withdrew $100k from her deceased husbands 401k  and we had taxes taken out.  The problem is, is that she is also on the Healthcare marketplace in CO and when I enter her Form 1095-A, she is being required to pay back 98% of her 2021 premium tax credit.  Any suggestions would be greatly appreciated.  She now owes over $7,500.  Thank you.

 

0 Cheers
5 Comments 5
abctax55
Level 15

All you can do is try to lower her AGI below the thresh hold/cliff.

IRA (if she has earned income)

SEP ( if she's self-employed)

HSA contribution (if she qualifies).  

 

HumanKind... Be Both
John66
Level 2

She doesn't have any earned income.  I thought about the IRA, as well as the rollover but she is past the 60 day timeframe.

0 Cheers
abctax55
Level 15

It's hard to get that horse back in the barn after the fact...

HumanKind... Be Both
John66
Level 2

Oh well.  Thought I would ask just to see if anybody else had any ideas.  I knew it was a long shot.  Thanks and have a great evening.

 

BobKamman
Level 15

It's easy to get the horse back in the barn.  But putting the toothpaste back in the tube, is difficult.  Wait till she finds out her Medicare premiums are going up because of this, also.