Form 8962 and 401% of poverty

[Marie]

My client made $68057 my chart says $68960 is 400% of poverty.  At this amount ATX is saying a complete repayment of the PTC .  Where is my mistake? 

 

[Gail in Virginia]

Hard to say from information.  Are you using the modified AGI when you tell us how much the client made?  Or just wages?  Did they have any non-taxable income?  If they have earned income, would a small IRA contribution before April 15 get them below 400% of poverty and save them paying this back?

[Marie]

the amount is modified AGI , the amount on the 8962.  No non tax income.  I can do an IRA, which we will do to get it down to under 400%, but I was wondering if I have a wrong chart? or why my numbers aren't panning out?   $68057 shouldn't be 401%, according to my poverty level chart.  Without an IRA they will pay back $18000 - ridiculous!!  

[jklcpa]

53 minutes ago, Marie said:

the amount is modified AGI , the amount on the 8962.  No non tax income.  I can do an IRA, which we will do to get it down to under 400%, but I was wondering if I have a wrong chart? or why my numbers aren't panning out?   $68057 shouldn't be 401%, according to my poverty level chart.  Without an IRA they will pay back $18000 - ridiculous!!  

 

If your client is using the poverty figure for a household of 2 people, that figure is $16,910 according to the 2020 instructions, so 400% of that would be $67,640.   

The $68,960 you referred to is based on this year's poverty numbers of $17,240 for a 2-person household.