Subsidy Repay

[TaxGuyBill]

That cuts the repayment by 75%! Thank you!!

Great! I'm glad I could help.

[JoshinNC]

MFs!!

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!!

[TaxGuyBill]

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.

[BP.]

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

[ATSMAN]

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.

[JoshinNC]

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