ACA premium tax credit repayment

[Snuff]

Client owes large premium tax credit repayment due primarily to being declared disabled by Social Security & receiving
3 years worth of back payments. Is there any way around using the full SS payment to figure the repayment? any help would be greatly appreciated.

[TaxGuyBill]

Sorry, nothing can be done about the Lump Sum Social Security payment in regards to the Premium Tax Credit.

If the taxpayer also had "earned" income, contributing to a deductible Traditional IRA could reduce or limit the repayment. If the taxpayer is married, filing Separately could do the same thing. If taxpayer was Married and had "earned" income, the combination of both could yield the best results.

If that doesn't apply, I don't think there is much you can do.