Due to job loss, I was working for only part year in 2023. Marketplace Insurance requires you to give an estimate of your annual income. If it turns out to be lower than your actual income, you will have a penalty. I had Mkt place insurance for a few months and then got a job which paid more than my old job. in the tax form, I had a penalty ($2.7K) for the entire year. This was wrong because I canceled insurance after I started working. Turbo Tax also calculated the same penalty amount reducing my refund by that much. I asked the question in the community and the "experts" said the penalty was correct. I filed the tax manually with the reduced refund. I called and appealed the wrong penalty assessed and explained the correct reasoning. The IRS reviewed it and removed the penalty and gave me back the full refund amount! Moral of story: Do not blindly rely on experts, but learn to reason through things and your sense of right and wrong. This is a useful life lesson that I hope to pass on to my family.
P.S. I wish I could see my post from last year and include the link so you can see my question to the community and the replies from the experts. However, I am unable to login directly to the community website to see my past activity - perhaps there are technical issues.
posted
last updated
April 16, 2025
8:03 AM
