At the beginning of 2020, my wife and I were relying on her modest income while I sought employment. Since we didn't know when, or if, I would become employed, we decided to purchase health insurance through our state health insurance exchange and used my wife's income to estimate our yearly income. In late February, I became employed and so we immediately canceled our marketplace coverage so that we could move to my employer-based plan. Unfortunately, my state exchange stated that it was too late to cancel until the end of March, and so we had insurance coverage from both my employer and the state exchange for one month - though we used only my employer-based plan beginning in March. While completing my taxes, TurboTax notified me that our 2020 income exceeded 400% of the FPL, and so we are on the hook for 3 months worth of insurance premium subsidies.
It was my understanding that the American Rescue Plan (ARP) waived repayment of excess premium subsidies for 2020. Am I misunderstanding the way in which the ARP is applied? Are my wife and I eligible for a waiver, or must we repay the subsidies in full? Has TurboTax not yet been updated? Thank you in advance for the assistance.
