Hello! I am working with a member of the clergy on their insurance and have a few questions regarding the Premium Tax Credit (Form 8962):
- The client receives a gross income of $50k. The client also receives a separate allowance for their mortgage of $30k. Does the housing allowance count toward their estimated household income when calculating the amount of the credit? Or should only the $50k be used when calculating the credit?
- Currently, the church pays directly for their health insurance. In order to receive the PTC, would the client need to pay for insurance themselves?
- If the client receives the credit, but it was miscalculated, would they repay the balance on their tax return?
Thank you in advance!
Anna
