All of the ACA stuff is new and extremely confusing for me. I've tried to research online but a lot of the information is worded vaguely.
If I underestimate my annual income, I understand that I may be required to pay back some of the credits I received. I am confused by the payback cap amounts. If by some miracle my income ended up being above 400% of the FPL, it says online that there is no cap and I would have to repay 100%. Does that mean I would have to repay every dollar in credit I received throughout the year?
That doesn't make sense as the healthcare.gov website displays an available credit even if you estimate your income to be above the 400% of FPL level from the beginning.
I'm sure I am missing something simple here but taxes make my head hurt and I just need some assistance clearing the fog. Thanks! 🙂
The repayment is UP TO 100% of the advance credit ... working the form 8962 is really the only way to see how much of the credit needs to be repaid. https://www.irs.gov/forms-pubs/about-form-8962
The repayment is UP TO 100% of the advance credit ... working the form 8962 is really the only way to see how much of the credit needs to be repaid. https://www.irs.gov/forms-pubs/about-form-8962