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1095-A Reconciliation

Level 1

I have a client who started the year working part-time then was moved to full-time in June.  While part-time she qualified for the Premium Tax Credit.  Unfortunately, she did not adjust her income once she went full-time.  Now her income for the entire year disqualifies her for the PTC as it is over 401% of the federal poverty line.  Is there a way to get her partial credit for the months she was eligible or set the repayment limitation on form 8962?


Thank you for any help

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2 Replies 2
Level 15

Nope - unfortunately.

Failure to notify the exchange results in this many, many times.    If she had done so, she would have been paying the same amount in each month that she owes now...so effectively she has had an interest free loan.  Altho I've never been able to really convince a client of that.  I've had clients have to pay back more than $ 22,000 = OUCH.

If the income is close to the "cliff" consider an IRA, or HSA contribution or both if at all possible to reduce or eliminate the APTC repayment.

Former Chump..oops..AllStar...I used to be a people person, then people ruined it

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Level 15
Level 15

Many times even when they do call and update their income its too late and the pay back will result...its a flawed system, they should be basing the credit on prior years income, not making you predict the future.