Hello! Thanks for participating in our event today. I know this can be a difficult topic to understand, and being hit with an unexpected tax bill is a very stressful experience.
When you sign up for an advance premium tax credit for assistance with paying for health insurance, you are basically prequalifying for a tax credit based on your income and requesting that it be paid in advance to your insurance provider, rather than paying out of pocket and waiting till next year to get the tax credit as a refund. The portion of the premium you are expected to pay, and the portion paid by the credit, are calculated based on the income you report. Unfortunately, if your income is higher than you thought it would be, you will have to pay your APTC back. If your income changes during the year, you need to report that change to avoid this situation at tax time. You should be able to report income changes by logging into your account and clicking on the “Report a Change” button. It sounds like you may not have been aware of that. This means that if you were receiving all of your APTC throughout the year based on a lower income, then you actually received too much assistance, and you will have to pay it back. However, the amount you must pay back will be capped at a certain amount based on your annual household income. If you are unable to pay the entire amount you owe at filing time, you can set up a payment plan agreement with the IRS which will reduce the penalties/interest you are charged. I know that probably doesn't make you feel much better, but I hope at least it helped you understand the situation.
