Jump to content
ATX Community

Repaying the subsidy?


Marie

Recommended Posts

Client went on the marketplace, got insurance and a subsidy. Her husband is disabled and receives social security. I'm almost sure that no one told her she had to add in his SS to their income to get a household income figure. Well, now they owe over $2000 for repayment. If she does not want to repay, what are the repercussions? They are not receiving a refund- never do, she runs the family farm and does not pay estimates. I understood that no liens could be put on, and really nothing forcible to get the subsidy back. Is that right? If she gets a USDA payment of some sort, would that amount be held out of the USDA payment?

Link to comment
Share on other sites

Check your calculations. Only the taxable portion of SS is used to add to the household income. Any repayment would be taken from a possible refund or result in a tax due. They can't refuse to pay. That would be the same as refusing to pay a tax due and the IRS will indeed do everything possible to them to collect the balance due.

  • Like 1
Link to comment
Share on other sites

Check your calculations. Only the taxable portion of SS is used to add to the household income. Any repayment would be taken from a possible refund or result in a tax due. They can't refuse to pay. That would be the same as refusing to pay a tax due and the IRS will indeed do everything possible to them to collect the balance due.

 

 

This isn't correct.  For the PTC (subsidy) the amount used in the calculation is MAGI and includes AGI, t/e interest, foreign earned income exclusion from form 2555, and the non-taxable portion of SS added back.

 

The definition and calculation of MAGI that is used for form 8965 for the shared responsibility payment (the penalty) is different.

Link to comment
Share on other sites

This isn't correct.  For the PTC (subsidy) the amount used in the calculation is MAGI and includes AGI, t/e interest, foreign earned income exclusion from form 2555, and the non-taxable portion of SS added back.

 

The definition and calculation of MAGI that is used for form 8965 for the shared responsibility payment (the penalty) is different.

Judy, thank for pointing this out. you are correct and I was thinking of the penalty exemption and not the PTC. Accept my apologies please.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...