Change of income question

[powjunky]

Is there a difference in outcome between scenario 1 and 2?
Someone applied on marketplace estimating 2017 income at 2005 of FPL based on current part time employment and got subsidy. In Sept of 2017 they got promoted to full time and now her income is at 300% of FPL.
1. They call marketplace to report the change right away. Get lower subsidy
2. They don't call to report the change

In #1. Would they have repay portion of the subsidy because actual annual income is higher than estimated initially?
Thanks!

 

[Yagents]

Ummmmmm.................2017 income no longer matters.

Yes, if 2018 income higher, they will owe back money at year end.(clawback)
Either it will be for 4 months (reporting it now), or the entire year (don't report it).

Yes, if report 2018 income higher, you may lose your lower deductible CSR plan. CSR credits cannot be clawed back at tax time.

 

[powjunky]

Either it will be for 4 months (reporting it now), or the entire year (don't report it).

Yes, this is how I understood that.
What if the same person got FT job and her income went over 400% of FPL and she became eligible for affordable group ins...Called the marketplace to report the change in income and to cancel ind coverage, since she will go onto that group plan. Will marketplace require to pay back the subsidy from Jan thru Aug due to income being higher than estimated, or since the person notified immediately upon the change of employment/income they can't

 

[Yagents]

Yes, she will have to pay it all back if goes above 400% FPL.
Period.
Honesty doesn't get you a prize with the fed gov't.