topic Net Premium (Health Insurance) Tax Credit and Overestimated Income 2019 in Deductions & credits

Net Premium (Health Insurance) Tax Credit and Overestimated Income 2019

Edge10 — Thu, 15 Oct 2020 14:20:18 GMT

I overestimated my income and do not believe I will be entitled to the Net Premium Tax Credit. Base on my income I would have qualified for medicaid. Should I remove this credit from my return and if so, how do I do this ?

Re: Net Premium (Health Insurance) Tax Credit and Overestimated Income 2019

AmeliesUncle — Thu, 15 Oct 2020 15:41:41 GMT

Did you receive Advance Credit (column C of the 1095-A)?

If so, you DO still qualify.

Re: Net Premium (Health Insurance) Tax Credit and Overestimated Income 2019

Edge10 — Thu, 15 Oct 2020 17:19:18 GMT

Yes, I did receive the full year of advanced premium tax credit shown in column C on the 1095-A. Will there be response or issue from the IRS due to the overestimation ? I recall reading that if this situation occurs, I will not be eligible for advanced premium tax credit in the future and the credit would be issued as a refund after filing the return for the year.

Re: Net Premium (Health Insurance) Tax Credit and Overestimated Income 2019

AmeliesUncle — Thu, 15 Oct 2020 17:19:10 GMT

No response from the IRS. You qualify.

As being eligible for the Advance credit next year, maybe. If you think your income would be higher, you would need to prove that to the Marketplace to the their satisfaction in order to get the Advance credit. As you said, if you don't receive the Advance credit and your income ends up qualifying, you will get the full amount of the credit on your tax return. Otherwise, if you think your income will be similar or lower, you may qualify for Medicaid.