Announcement

Collapse
No announcement yet.

Subsidy Repay

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Subsidy Repay

    Client owes $10,000+ subsidy repay as income from LLC was wayyyyy more than they told Marketplace it would be. Based on the Trump EO and lack of any repeal vote in House, what are their options?

    I'm thinking either pay it, extend the return or file the return with the repayment on there and not pay it since it is "uncollectible" by IRS. Thoughts please.

    TIA
    Tags: aca credit repayment, obamacare
    #2
    Originally posted by JoshinNC View Post
    Client owes $10,000+ subsidy repay as income from LLC was wayyyyy more than they told Marketplace it would be. Based on the Trump EO and lack of any repeal vote in House, what are their options?

    I'm thinking either pay it, extend the return or file the return with the repayment on there and not pay it since it is "uncollectible" by IRS. Thoughts please.

    TIA
    Does he ever have a refund coming? I believe subsidy repayment is different than shared responsibility penalty. IRS will come after that if not paid.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

    Comment

      #3
      Need to distinguish SRP (penalty), which this is not, from APTC (subsidy.)

      Comment

        #4
        The repayment is completely collectible, and the Executive Order and the bill on Congress would not change that in any way. The taxpayer needs to make the repayment.

        Can the taxpayer contribute to retirement accounts (such as a SEP or IRA) to get their income below 400% of the Federal Poverty Level? If so, that will limit the repayment. Filing as Married Filing Separately can also get one or both returns under 400% of the FPL. Combining those two methods is a third option to get their income below 400% of the FPL.

        Comment

          #5
          MFs!!

          Originally posted by TaxGuyBill View Post
          The repayment is completely collectible, and the Executive Order and the bill on Congress would not change that in any way. The taxpayer needs to make the repayment.

          Can the taxpayer contribute to retirement accounts (such as a SEP or IRA) to get their income below 400% of the Federal Poverty Level? If so, that will limit the repayment. Filing as Married Filing Separately can also get one or both returns under 400% of the FPL. Combining those two methods is a third option to get their income below 400% of the FPL.
          That cuts the repayment by 75%! Thank you!!

          Comment

            #6
            Originally posted by JoshinNC View Post
            That cuts the repayment by 75%! Thank you!!
            Great! I'm glad I could help.

            Comment

            Previous template Next

            Disclaimer

            Collapse

            This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

            Working...
            X