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New Member
posted May 31, 2019 7:11:00 PM

My salary in 2016 changed after I had already chosen my health insurance plan. How do I mention that when filing my taxes?

A large deduction was taken from my estimated Federal Tax Return because I made more money than specified on my health plan. However, my salary changed several months after my health plan went into effect. Is there any way I can not have such a large deduction taken?

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1 Best answer
New Member
May 31, 2019 7:11:03 PM

Unfortunately, no.  The way the ACA works, you estimate your salary when you sign up, and based on that estimate you receive a certain amount in subsidy (those who qualify).  Then, at tax time, the estimate is compared to your actual salary received.  If the estimate was too low -- regardless of the reasons -- then you'll owe some or all of that subsidy back.  If the estimate was too high -- regardless off the reasons -- then you'll receive an additional credit amount on your tax return.

2 Replies
Level 9
May 31, 2019 7:11:01 PM

For the future, you are supposed to report income (and family size) changes immediately to the the Healthcare Marketplace so they can adjust your Advance credit that you are receiving.

New Member
May 31, 2019 7:11:03 PM

Unfortunately, no.  The way the ACA works, you estimate your salary when you sign up, and based on that estimate you receive a certain amount in subsidy (those who qualify).  Then, at tax time, the estimate is compared to your actual salary received.  If the estimate was too low -- regardless of the reasons -- then you'll owe some or all of that subsidy back.  If the estimate was too high -- regardless off the reasons -- then you'll receive an additional credit amount on your tax return.