@BREAKS007 wrote:
This all makes sense since the government paid 99% of the premium via subsidies.
That does put you in the "gray area", where math and logic would dictate that most of it should be repaid as "tax due". However, as you found out, there is no IRS guidance on this matter.
@BREAKS007 wrote:
Personally, I think there should be a better system and the insurance provider should send it back to the government.
The insurance provider can't do that because as I explained in my first comment, in MOST cases a reduction of insurance premiums would NOT change anything (or only have a minor effect). The insurance provider has no idea of the final results of your tax credit on your tax return, so that means the insurance provider would not be able to determine how much (if any) would need to be returned. Unfortunately, that burden falls on each individual, and without IRS guidance, it makes it difficult to figure out what to do.
