Ok, this PTC is new for all of us. When I originally done the form 8962 TP was due a refund of PTC not received, when I entered their IRA deduction showed a repayment of a significant amount of PTC. Could this possibly be right?
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I was reading the instructions for the 8962 and the reason the decrease for them is the percentage is below 100% of the federal poverty level so my software automatically checked they did not qualify for credit. However, according to the instructions they meet all the conditions to be counted as over 100% and qualifying!!!!!!!! This is SO confusing!!!!!!!Comment
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Sorry, I read the original too quickly. Yes, below 100% of poverty level and no PTC.
Depending on amounts you may want to see if you can get the IRA reversed, or even count is as a non-deductible. On another note, why is someone at that income level putting money in a traditional rather than a Roth?Comment
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On my software, there is a tab for counted as 100% or over of poverty if those qualifications are met, that fixed the form and now the IRA deduction helps them as it should instead of hurting them!Comment
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I know right? A whole new amount of learning for us!Comment
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That is why it can be important to receive the Advance credit. If they did NOT receive the Advance credit and their income fell below 100%, they would not qualify for the Credit at all.Comment
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I'm more concerned that IRS is going to be putting the onus on us as to IF clients should have received PTC.Comment
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I just had one where TP qualified for credit based on estimated income at the time. (He was unemployed.) He received unemployment comp, then found a job but had a 6-mo waiting period to qualify for insurance, so between all that unexpected income + adding on income earned by dependents, he wound up having to pay back $2,500 PTC. I told him how lucky he really was, because all that income brought him up to 395% of poverty level cap, and if it had gone over 400%, he would have had to pay back $9,000!Comment
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