Options after the fact?

[neilbrink]

My client will have to pay back all the credit that was given toward her health insurance premiums because her income went up modestly this year over last year.  She ended up being above the 400% level.  Are there any options available now for any forgiveness of that credit repay? 

[Jack from Ohio]

My client will have to pay back all the credit that was given toward her health insurance premiums because her income went up modestly this year over last year.  She ended up being above the 400% level.  Are there any options available now for any forgiveness of that credit repay? 

Nope.  Only abatement of late payment or underpayment penalties associated with the amount due. 

 

The repayment is subject all collection actions of the IRS.

[jklcpa]

My client will have to pay back all the credit that was given toward her health insurance premiums because her income went up modestly this year over last year.  She ended up being above the 400% level.  Are there any options available now for any forgiveness of that credit repay? 

 

 

If funding and IRA and/or HSA will reduce the MAGI below the 400% of poverty, please consider doing so. She has only until 4/15 to fund those for 2014 contributions.  It is worth considering because not only may she avoid the APTC payback, but she would also be saving for her future medical or retirement needs and reducing her tax liabilities too.

 

That would be a win⁴ if it works for her situation.