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roxyathome
New Member

Is premium tax credit based on the monthly salary you make for the months you have coverage or for the entire year?

I worked full time and had insurance through my employer from Jan thru Sept.  In October I quit my job and got a part time job to care for my mother and health insurance was not offered by my employer.  I signed up for a plan through the exchange and entered my monthly income and qualified for a subsidy.  But now, when I do my taxes and enter both W2's from the full time and part time job, it calculates that I wouldn't qualify for the amount of subsidy I received so wants me to pay it back for those 3 months I received subsidy.  That doesn't make sense to me.  I lost coverage through my employer and took a huge cut in pay.  That is why I qualified for special enrollment and subsidy in the first place.  Based on the current (supported by paystubs) monthly wages.  

2 Replies
Leonard
Intuit Alumni

Is premium tax credit based on the monthly salary you make for the months you have coverage or for the entire year?

Your premium tax credit is based on your income for the entire year.  When you applied for the premium tax credit you had to estimate your total income for the year.  When your tax return was filed your premium tax credit was computed on your total income, W-2s, for the year not just what your income was during your 3 month coverage period.  That is why your premium tax credit was not allowed.

roxyathome
New Member

Is premium tax credit based on the monthly salary you make for the months you have coverage or for the entire year?

I would never have been able to afford coverage at my part time wage with no subsidy.   That seems faulty.  It asks me my monthly wage when I signed up and wants a supporting paystub.  That pay was supported for the months I had coverage.  I wouldn't have anticipated that I would have to take a part-time job later in the year and saved to buy my own coverage.  Seems that you should be able to separate out what you made when you were covered through Obama Care.
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