Skip to main content
Level 1
February 6, 2020
Solved

Estimated Agi 65000 on first healthcare.gov app2nd half year app 56000, earned 63000 and you tell me I owe all of discount back, Why all of it?

  • February 6, 2020
  • 1 reply
  • 17 views
I went on medicare 2nd half but 1st half discount was based on $65000. Why am I penalized for whole year?
Best answer by CatinaT1

Unfortunately, the Premium Tax Credit is calculated on an annual basis, not a monthly basis.  So even though you changed your income amount half way through the year, you had received Advanced Premium Tax Credit based on that original number for the first half of the year.

 

From what you have indicated, you received the Advanced Premium Tax Credit for each month of 2019 and had Medicare for half of the year.  You would not have qualified for a Premium Tax Credit if you were on Medicare.  When you file your return the Premium Tax Credit is reconciled against your actual income and situation.  If you were overpaid Advanced Premiums, you do have to pay this back.  

1 reply

CatinaT1
CatinaT1Answer
Level 15
February 6, 2020

Unfortunately, the Premium Tax Credit is calculated on an annual basis, not a monthly basis.  So even though you changed your income amount half way through the year, you had received Advanced Premium Tax Credit based on that original number for the first half of the year.

 

From what you have indicated, you received the Advanced Premium Tax Credit for each month of 2019 and had Medicare for half of the year.  You would not have qualified for a Premium Tax Credit if you were on Medicare.  When you file your return the Premium Tax Credit is reconciled against your actual income and situation.  If you were overpaid Advanced Premiums, you do have to pay this back.  

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"