My income changed in July, and I didn't report the change for the marketplace insurance. I cancelled receiving obamacare in August. Now it is saying that I owe $1500?

[maryshaba1]

My income remained the same from January until July, only in July did it change. However we did cancel it in August. The income was the same from January until July, I should not be penalized for the premium tax credit..Please help!!

[HollyP]

No, unfortunately this is how the law was written where your total annual household income is used to determine the Premium Tax Credit (PTC). It is not just based on your income during the time you had Obamacare. Also, it is not enough to just cancel cancel the insurance, you must still report the change to recalculate the PTC. This change is now being accounted for on your tax return, and thus the penalty. Please see the following link for more info. https://www.healthcare.gov/reporting-changes/why-report-changes/

[luvnlyt]

I went to the link above, but couldn't find anywhere that it says income changes still have to be updated even after cancelling coverage? When I cancelled, I was not told that I still had to report changes. Could someone share a link for that requirement? Thanks!