I have a client who is self employed and has not insurance. His wife received marketplace insurance from June to December. His income is high enough where the Marketplace will want all of the premiums back. Is there any other options for him since he in not on the policy?
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HSA contribution?
SEP / Traditional IRA contribution?
179?
Chris -
In addition to spanel's comments, maybe filling as Married Filing Separately.
The way you phrased things things makes me wonder, did they get married in 2023? IF so, in SOME cases the Alternative Calculation for the year of marriage SOMETIMES reduces the repayment.
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Since client does not have any health insurance, let alone HDHP coverage, I don't see how he can contribute to HSA. I also recall that if filing MFS, no PTC is available, so still need to pay it back.
It is not a tax, it is a repayment of a what is essentially a loan. Clients apparently can afford health insurance without a subsidy."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe HowardComment
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Yes, it disqualifies the PTC, but the repayment limitation (based on percentage of poverty level) still applies. It is fairly common that the repayment is reduced by filing MFS. Whether or not that that reduced repayment is enough to offset any negative aspects of MFS depends on the specific facts-and-circumstances.
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