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Level 2
posted Mar 9, 2022 1:01:38 PM

Obamacare 2021 Income Overage

I was on Obamacare for three months in 2021.  My income went over the maximum amount to receive a subsidy, and now Turbo Tax is stating I must repay 100% of the subsidy I received.  Two questions:  (1) I thought Obamacare overages were forgiven in 2020.  Was this exemption not continued in 2021?  Also, (2) Income levels to qualify for a subsidy increased substantially in 2022, with a sliding scale for having to repay the subsidy.  Is there no allowance for either of these situations in 2021?

 

0 2 603
2 Replies
Expert Alumni
Mar 9, 2022 1:21:40 PM

If TurboTax is not calculating a Premium Tax Credit, then there is no allowance in your case.

  1. No, that is not the case for tax year 2021. Per IRS: If advance credit payments were made to your insurance company and your actual allowable credit on your return is less than your advance credit payments, the difference, subject to certain repayment caps, will be subtracted from your refund or added to your balance due for tax years other than 2020.
  2. Please click here for the Federal Poverty Level (FPL) for 2021 and scroll down to the 2021 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES AND THE DISTRICT OF COLUMBIA table. You may also want to review the 2021 Instructions for Form 8962, page 7.

Level 2
Mar 9, 2022 4:29:07 PM

Thanks for clarifying.  I'm not happy about this answer, but that's the facts.