topic Repayment of entire year of marketplace advance premium tax credit: I was out of work for 7mo in 2018; new job began in Aug2018. Do I have to pay back 12mo of the credit? in Get your taxes done using TurboTax

Repayment of entire year of marketplace advance premium tax credit: I was out of work for 7mo in 2018; new job began in Aug2018. Do I have to pay back 12mo of the credit?

maryjo_staresini — Tue, 04 Jun 2019 21:30:51 GMT

I did not update my income in Aug2018 in the MarketPlace when I started my new full-time consultant position

I only earned full-time wages for the remaining 5 months of the year

I was not eligible for my recruiter's health insurance plan until Dec2018, so I just kept the MarketPlace plan that one additional month; 2019 I am now getting health insurance through the recruiter's plan

Should I have to pay back the Premium Tax Credit rec'd through the MarketPlace from Jan-July2018? I was out of work, earning unemployment insurance and working odd jobs to try and make ends meet during those 7 months. I needed that credit during those months.

Yes, you have to payback the Premium Tax Credit subsidy....

HelenaC — Tue, 04 Jun 2019 21:30:52 GMT

Yes, you have to payback the Premium Tax Credit subsidy. Unfortunately, the MarketPlace health insurance Premium Tax Credit subsidy is based on your actual annual income not your employment status or what you earned on a per month basis.

Taking the Premium Tax Credit as a monthly subsidy

The credit acts like a discount and reduces what you pay monthly for coverage.

However, if your family’s situation changes during the year, the premium tax credit you qualify for also changes. If you forget to update your original estimates, you may need to pay back some or all of your credit on your tax return.

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