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

[jessebritt44]

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?

[TaxGuyBill]

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.

[ThomasM · Accepted solution]

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.