What Law/regulation Caps the Tax Credit that I Must Pay Back at $300?

[ApeApple]

I received more tax credit towards my health insurance premium.

I understand that I must pay back the difference. However, based on my income, it appears that there is a $300 cap on what I need to pay back.

I'm new here, so I can't post URLs, but if you google this , you'll see what I'm talking about:

cap on the amount of advance credits that individuals and families must pay back

After I file my 2014 taxes, which agency (IRS or Healthcare.gov) will bill me the $300? What if they bill me for the whole $1000(for example)? In case I need to prove to them that I should be protected by the $300 cap, which law or regulation should I refer to?

Thanks!

 

[AllenChicago]

ApeApple, the exact $$ amount of your repayment will be calculated when you (or your tax preparer) do your 2014 tax return. That $$ amount will be paid by you, or deducted from your refund amount, at tax preparation time too. There will be no bill sent to you from the Government.

 

[G.Gordon]

It is only capped at $300 if your income is less than 200% of the FPL. There is a publication on h.gov.

 

[ameneses54]

ApeApple, the exact $$ amount of your repayment will be calculated when you (or your tax preparer) do your 2014 tax return. That $$ amount will be paid by you, or deducted from your refund amount, at tax preparation time too. There will be no bill sent to you from the Government.

Just curious. What happens if your claw back is positive, but you don't have any refund due?
Considering the IRS can't bill you or apply any other measures for collection,will the outstanding balance be forever on the books and kick in when you have a refund or will it expire?
As has been widely publicized, the shared responsibility payment is not enforceable by the IRS. That means the IRS will offset the payment against tax refunds due, but it can’t file liens, levy assets or start collection proceedings for this payment
Based on current law the IRS has no enforcement mechanism to collect the individual mandate penalty. See the following IRS website - http://www.irs.gov/uac/Questions-and-Answers-on-the-Individual-Shared-Responsibility-Provision
The law prohibits the IRS from using liens or levies to collect any payment you owe related to the individual responsibility provision, if you, your spouse or a dependent included on your tax return does not have minimum essential coverage. However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund you may be due.

 

[AllenChicago]

Ameneses54, ApeApple is not talking about the Shared Responsibility penalty for not being insured. He/She is asking about repaying an excess of APTC subsidy received. The IRS will enforce recapturing this to maximum extent possible. The calculation in baked into the tax filing forms. No legal way around it.

 

[ameneses54]

Ameneses54, ApeApple is not talking about the Shared Responsibility penalty for not being insured. He/She is asking about repaying an excess of APTC subsidy received. The IRS will enforce recapturing this to maximum extent possible. The calculation in baked into the tax filing forms. No legal way around it.

You pointed out a VERY important consideration here, and that's to not confuse the clawback repayment with the Shared Responsibility penalty---mistake which I made.
Having said that, Form 8962 line 28 has instructions on repayment:
Repayment Limitation:Using the percentage on line 5 and your filing status, locate the repayment limitation amount in the instructions. Enter the amount here.
For low income (below 200% FPL) this will probably offset any substantial penalties.

----------

I received more tax credit towards my health insurance premium.

I understand that I must pay back the difference. However, based on my income, it appears that there is a $300 cap on what I need to pay back.

I'm new here, so I can't post URLs, but if you google this , you'll see what I'm talking about:

cap on the amount of advance credits that individuals and families must pay back

After I file my 2014 taxes, which agency (IRS or Healthcare.gov) will bill me the $300? What if they bill me for the whole $1000(for example)? In case I need to prove to them that I should be protected by the $300 cap, which law or regulation should I refer to?

Thanks!

Do not confuse the clawback repayment with the Shared Responsibility penalty.
Please take a look at the previous post!

 

[taterpeeler]

goodness sakes alive..... certification training on monday.....

 

[ameneses54]

I received more tax credit towards my health insurance premium.

I understand that I must pay back the difference. However, based on my income, it appears that there is a $300 cap on what I need to pay back.

I'm new here, so I can't post URLs, but if you google this , you'll see what I'm talking about:

cap on the amount of advance credits that individuals and families must pay back

After I file my 2014 taxes, which agency (IRS or Healthcare.gov) will bill me the $300? What if they bill me for the whole $1000(for example)? In case I need to prove to them that I should be protected by the $300 cap, which law or regulation should I refer to?

Thanks!

Take a look at https://kaiserfamilyfoundation.files.wordpress.com/2013/01/8154.pdf

 

[AllenChicago]

Take a look at https://kaiserfamilyfoundation.files.wordpress.com/2013/01/8154.pdf

Hey, that 2011 Kaiser document is showing subsidy repayment limits applying up to 500% of FPL. The most recent pamphlets say that anyone over 400% of FPL must repay the full subsidy received during the taxable year. No limit.

 

[TxOnline]

Repayment Caps:
Obamacare Tax Credits: The Pay Back Requirements For Underestimating Annual Income | Nolo.com