penalty avoidance

[aloneandpreplexed]

Poor clients typically have AGI under 4000; generally repay Adv Prem Credit 75 - 90 annually. Never any income tax.  This year they got an unexpected Class Action award. Still no tax liab but increased amt of Adv Prem Credit to repay. System wants to assess 2210 penalty. Can I say "no tax liab" for prev yr? or must I count the Adv Prem repayment of $76?????

[George4Tacks]

Probably. Which tax software are you using?

[aloneandpreplexed]

using Proconnect. 3rd year.  Over 30 in the business.  I read Inst for 2210 and it says the Adv PTC repay can trigger underpayment - seems terribly unfair since the health insur stuff was thrust on IRS and has nothing to do with taxes. Oh well.