Possible exemption issue

[jshtax]

Client has around $95000 AGI and is family of 4, They pay $1056/mth premium this is in excess of 8% of AGI even the lowest cost bronze plan is greater than 8%. First I calculated the repayment of advance credit now I think they may not have had to pay the premium in the first place. I filled out the 8965 but it did not impact the due/refund any. Any direction on what I need to do would be helpful. 

[jklcpa]

For a family of 4 the 400% of FPL would be $94000 (23550 * 400%), so if they received any subsidy during the year they would owe the entire amount back without any cap on it.

If the entire family had insurance for every month of the entire year that met the requirements of minimum essential coverage, they would check the box on line 61 of the 1040, page 2 and not have to fill out the 8965 at all because there would be no penalty.

[jshtax]

So the family of 4 had insurance (minimum essential coverage) but received a subsidy. I calculated the repayment of the subsidy no problem up to this point. I think they could have exempted out of the insurance partially since it was not affordable (in excess of 8% of AGI). How do I handle the later being as it was not affordable?

[jklcpa]

I'm not sure what you are asking and I think you are confused about the exemptions.  Purchasing the insurance was a choice they made. The exemption would be to avoid the penalty from form 8965 (aka shared responsibility payment) for not having insurance for some portion or the entire year.  The exemption relates only to the penalty and has nothing at all to do with repaying the subsidy on form 8962.

 

 

 

[jshtax]

Ok so if they had insurance and it was not affordable too bad but if they didnt have the insurance this could the penalty reduced. It is almost not worth my time dealing with issues like this. I view it like EIC.