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client qualified for PTC at BOY, but changed by EOY


schirallicpa

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Is there any "weighing" of income to show that in the early part of the year, the client should have gotten the PTC, but because circumstances changes, they did not quailify by end of year.  the thing that is really confusing me, is that she went online and changed her income amounts during the year, (which she was supposed to ) but it made the 1095A a multi-pager.  Regardless, the calculation is on 8962 is on annual income, and I am not finding a way to show that income was only $x at BOY thru June, and then became $xx thru Nov, and then $xxx in Nov and Dec.  I feel like they are being penalized.  Yes, in the big picture they did have the 401%.  But not initially.  (I know, I'm grabbing at straws, right.  Which they are trying to ban in western NY now)

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The rules are only for full year income as far as I know.  Judy gave me some great advice a couple years ago about getting them under the 400% level by making an IRA contribution.   Is that a possibility here?   The dollars contributed to the IRA may be partially or completely recovered.

Other than that, I have nothing but political commentary to share with you, which will get @jklcpa on my case, so I won't do it. 

Except to say that this frikkin' law is stupid as $h1t.  Sorry Judy, I could not help myself, you can whip on me now.

Tom
Modesto, CA

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It is also possible that they would save by filing separately.  I know the law says you can't get PTC if you're MFS, but what happens is they don't qualify for any PTC, correct, but the payback is limited.  It seems so wrong because it really is incredibly unfair for someone whose income was too high to qualify for the credit to somehow get away with not paying it all back, but there are the two loopholes.  They are legal and I'm with Tom on this law from h e double hockey sticks.

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I agree with the others to see if the IRA will help.  The other suggestion that is in a similar vein is to contribute to an HSA, and that requires that the plan be eligible.  If eligible and if the TP has existing medical expenses they are planning to spend out-of-pocket, it shifts the deduction from Sch A to an above-the-line deduction for AGI, and they can access the funds right away for bills they'd be paying anyway. 

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2 minutes ago, jklcpa said:

I agree with the others to see if the IRA will help.  The other suggestion that is in a similar vein is to contribute to an HSA, and that requires that the plan be eligible.  If eligible and if the TP has existing medical expenses they are planning to spend out-of-pocket, it shifts the deduction from Sch A to an above-the-line deduction for AGI, and they can access the funds right away for bills they'd be paying anyway. 

I thought about the HSA angle, but they would have had to bought a plan on the exchange that qualified for an HSA in the first place, correct?

Tom
Modesto, CA

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51 minutes ago, BulldogTom said:

I thought about the HSA angle, but they would have had to bought a plan on the exchange that qualified for an HSA in the first place, correct?

Tom
Modesto, CA

Yes, exactly so.

Also, don't worry about the cussing because there are plenty of aspects about this that I don't like either. 

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