Obama care subsidy pay back

[JenMO]

Couple had obama care for 8 months, then got a job with insurance. Any way not to have to pay back the subsidy? Any exemptions?

[spanel]

Couple had obama care for 8 months, then got a job with insurance. Any way not to have to pay back the subsidy? Any exemptions?

No.

Chris

[David1980]

then got a job with insurance

The problem is probably the job rather than the insurance the job came with?

Basically the taxpayer expected to fall somewhere between 100% and 400% of FPL when they signed up on the marketplace. Then obtained a better job for the last 4 months of the year that raised their income sufficient enough that they now qualify for less PTC than the amount of APTC received. Thus having to repay a portion.

Depending on where they ended up, the repayment is limited on 8962 line 28.

[TaxGuyBill]

POSSIBLE ways to reduce the repayment:

(1) Maximize retirement contributions (and/or HSA contributions, if they qualify) to get income under 400%.
(2) Try Married Filing Separately to get one or both incomes under 400%
(3) Both of the above.

[kathyc2]

POSSIBLE ways to reduce the repayment:

(1) Maximize retirement contributions (and/or HSA contributions, if they qualify) to get income under 400%.
(2) Try Married Filing Separately to get one or both incomes under 400%
(3) Both of the above.

PTC is not available for MFS except in rare cases such as abuse.

[TaxGuyBill]

PTC is not available for MFS except in rare cases such as abuse.

Yes, but filing as MFS could put one or both tax returns below 400% of the Federal Poverty Level, which could limit the repayment.