ACA and Lump Sum Back Social Security Back Payment

[Jshumbris]

Right now my income is over the allowable income to get the ACA credit and I am being required to pay the full amount of the credit I received which is over $7k. The only reason my income is over the allowable income for the credit is because my husband received a $45k lump sum back payment from social Security for disability. This money was not our money and we had to give it to the LTD company he was getting benefits from in 2020, 2021, and 2022. We already paid the taxes on majority of that $45k in 2020 and 2021. I have listed the repayment on Schedule A where it allows you to, but why is that $45k not being deducted from my income for the ACA calculation since it’s not 2022 income, it’s prior year income that was already reported. 

[AmeliesUncle]

Unfortunately, it is 2022 income.

The fact that you can claim a deduction or credit based on the repayments does not change that that you received this in 2022.  So unfortunately, it is correctly affecting the Premium Tax Credit.