Income not 100% of poverty level - APTC

[jasdlm]

Client had $400 in APTC.  Ended up not making income minimum.  Software wants to calculate payback (I'm using ATX).  I cannot figure out, even though I have checked the box on the Pt I - HI Below FPL - how to get it to stop calculating the payback. Made me doubt myself, but I'm pretty sure that under §1.36B-2   Eligibility for premium tax credit there is no payback required.  Please help if you can.  I am spending so much time on a return with $5k income :(.

Thanks much.

[jklcpa]

Have you asked your client for the estimated household income used at sign up?  Line 6 of the 8962 instructions give the criteria for that rule so that some people may still be able to actually qualify for the PTC even if the final household income is below 100% of FPL. If the person does qualify under that estimate HI rule, check the 'no' box on line 6 and continue on with the form.

If the client doesn't qualify under that "estimated HI rule" I think that there is a payback, but that the payback is capped using the table for line 28 in the 8962 instructions based on the filing status. 

[jasdlm]

Thanks very much, Judy.  You are a treasure.

[Cathy]

I had one a couple of years ago that the program couldn't handle properly.  I fought and fought with support and they said i was wrong.  Finally got through on the E-File help desk and the guy I spoke with told me to override the figures...did that, ATX still would not let it pass the E-File test so I had the client mail the return with an explanation of exactly what happened with ATX software.  The client got his refund with no questions asked!