Lost a very high paying $130,000/yr job on 6/30/21. Live in WA State. Losing 100% COBRA subsidy as of 9/30/21. Have just signed up on WA health exchange and it calculated a $1,325 monthly tax credit based on our only income (now) of $4,000/mth unemployment.
When I file taxes for 2021, will I be penalized for having a high income/wages (with severance it'd be around $130,000 W-2 income) for husband and I (married filing jointly)? Or will tax filing/IRS take into account that monthly income dropped to almost nothing as of 7/1/21and THAT's when the health insurance premium tax credits started (10/1/21 in this case)?
If the $1,325 in tax credits offered by the WA State health exchange are going to go away (and I'll owe all of that amount back) when I file, I'd rather stay on current health care plans via COBRA and pay about $1,300 out of pocket for way better coverage instead.
