I had three jobs in 2022 and that's likely to continue this year. 2022 was the first year we didn't claim a dependent. Also, we use the Healthcare Marketplace and somehow received more advance payments on the Premium Tax Credit than we were actually entitled to (lines 24 & 25 on form 8962). Every year prior we've received a refund but this year we owed quite a lot. . From what I can grasp, merely dropping a dependent may have accounted for much of the owed amount (no child tax credit, no Premium Tax Credit on the marketplace). Is that correct?
More importantly, what can I do to avoid owing next year? It's my understanding that at least part of the answer to that is to adjust my withholdings but:
- How do I do that?
- How do I know how much to adjust?
- Will this be different for people like me who have multiple jobs than if I just had one?
- How did the government give us more in advance payments on our PTC than we were actually eligible for?
Thanks.
