I had a state-run marketplace plan Jan-feb 2018 and at the time I was making less and finically eligible for obamacare. However, I moved states and got job that provided health care and increased my AGI to put me more that 401% above the poverty line for my state. It looks like I will have to pay back the tax credits even though i dont live in that state, have not been covered by the marketplace since i started making my current income. this seems unfair. is there anyway around this?
You'll need to sign in or create an account to connect with an expert.
Unfortunately, there is not a way around this. The healthcare tax credits are based on your income for the entire year. So if your income increases beyond what you predicted, the tax credits must be paid back. What state you live in doesn't really have anything to do with this. This is federal. Let's look at how this works:
The premium tax credit was available immediately when you enrolled in a plan through the Marketplace. It worked like a discount so you could get help paying for coverage throughout the year rather than having to wait until you filed your 2018 taxes. Payments of the premium tax credit went directly to the insurance company to pay a share of the monthly health insurance premiums charged to you. The amount was calculated based on what you estimated your 2018 income would be, along with how many people your plan needed to cover and where you lived.
Now that you’re reporting your actual 2018 income, ZIP code, and family size, we used this info to calculate the discount you should've received throughout the year, and made the necessary adjustment. You may have to pay some of it back (this happens if you made more money than you estimated when you applied), but there are limits on how much you have to pay back.
If you’re a single filer and your 2018 income:
If you’re a family of four and your 2018 income...
If you have more questions, add a comment below and I will be glad to help you.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
kritter-k
New Member
smfw29a2
Returning Member
tibbons2
Level 2
hti708
Returning Member
blue1234-
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.