Do I Have To Repay Premium Tax Credits If The Marketplace Miscalculated Them?

[cadylou]

Today from Kaiser Foundation:

Do I Have To Repay Premium Tax Credits If The Marketplace Miscalculated Them? | Kaiser Health News

I'm sure this will be a bigger problem than we think when tax time comes. Get ready for a flurry of phone calls in March . . . .

 

[Ann H]

Tax season will be a nightmare this year. There are bound to be a large number of clawback cases! Yes, excess APTC must be repaid, (subject to the caps for those with income less than 400% of FPL).

 

[Yagents]

It gets even better:

On tax returns, they must reconcile eligibility for the credit with their actual income and pay back some of the subsidy if they received too much.

That can happen if someone got a higher-paying job or a raise during 2014 and didn’t ask the government to alter the subsidy.

The IRS will waive penalties for making that payment late or for failing to pay estimated taxes throughout 2014.

Taxpayers must send in a letter for a penalty waiver. They still must pay the taxes within a year and will owe interest after April 15, the due date for individual tax returns.

IRS waives penalties for late payments linked to PPACA | LifeHealthPro

http://www.irs.gov/pub/irs-drop/n-15-09.pdf/