2020 8915E - deferred pmt in 2021 is making me have to repay PTC on 2021 Form 8962?

Forum|Forum|3 years ago
October 24, 2022
2 replies
9 views

2020 I took the penalty free withdrawal and claimed paying tax over 3 years.

For 2021, my adjusted gross income is 33,000 higher than the amount of money I really received (1/3 of the 2020 tax deferment).

Now, I owe $4000 back on my health insurance because it thinks I made that money. Is this a mistake? If so, how can I adjust it to show that I did not earn this money in 2021?

fanfare

Level 15

"my adjusted gross income is 33,000 higher than the amount of money I really received "

your AGI is $66,667 lower than the amount of money you actually received.

@brownies1476

Critter-3

Level 15

This is correct ... it is one of the draw backs to spreading the distribution over a 3 year period because it can affect other things. You can pay it all/some of it back to adjust the amount being taxed on the 2021 return however sometimes the cure is worse then the disease.