Workaround for Excess Advance Payment of Premium Tax Credit

[Kezmom]

My son received a substantial wage increase and bonuses in 2022 in the second half of the year. He did not know he had to renegotiate his monthly ACA insurance premium.  When I do his taxes he is being told to repay $ 3,000 . Is there any work around for this ? I have suggested he open an IRA though he does have a 401K. 

Also I tried using the 4692 Worksheet on the IRS site and I got different numbers (more in his favor!)  So which number is correct and how do I decrease the amount he will owe? 

Thanks in Advance

[BillM223]

Opening an IRA won't help any. The fact is that the government advanced $3,000 in dollars to pay his premiums. Some has to pay that back if they don't qualify to reduce it.

So was your son alone on this ACA policy, that is, he was not sharing it with anyone like you?

There is a table of Repayment limitations on page 15 in the instructions for the 8962.

[BillM223]

Since his $3,000 is larger than the largest number on the table, I assume that line 5 on the 8962 is 400 or more, which he has to pay whatever the amount is. There is no workaround from this.

[Mike9241]

had he notified the ACA the premiums he paid would have gone up maybe even disqualifying him from any advance credit. so he would have paid more every month in premiums vs paying it back now