Will receiving a lump sum from Social Security cause repayment of Marketplace Insurance ?
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Potentially yes (assuming you are referring to repayment of Advance PTC based on exceeding the household income threshold). You have to run the numbers to be sure, and of course the taxpayer should immediately go to the online exchange to update their income estimate.
"Changes in circumstances that can affect the amount of your actual premium tax credit include:- Increases or decreases in your household income. Events that could result in a significant increase to household income include:
- Lump sum payments of Social Security benefits, including Social Security Disability Insurance
- Lump sum taxable distributions from an individual retirement account or other retirement arrangement
- Debt forgiveness or cancellation, such as the cancellation of credit card debt"
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard - Increases or decreases in your household income. Events that could result in a significant increase to household income include:
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One of my clients ran into the exact problem. Yes the Advance Premium credit was recaptured but only to the max allowed. So taxpayer still got to keep a small portion of the PTC.Originally posted by JRL View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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