schirallicpa Posted March 22, 2018 Report Posted March 22, 2018 Is there any "weighing" of income to show that in the early part of the year, the client should have gotten the PTC, but because circumstances changes, they did not quailify by end of year. the thing that is really confusing me, is that she went online and changed her income amounts during the year, (which she was supposed to ) but it made the 1095A a multi-pager. Regardless, the calculation is on 8962 is on annual income, and I am not finding a way to show that income was only $x at BOY thru June, and then became $xx thru Nov, and then $xxx in Nov and Dec. I feel like they are being penalized. Yes, in the big picture they did have the 401%. But not initially. (I know, I'm grabbing at straws, right. Which they are trying to ban in western NY now) Quote
ILLMAS Posted March 22, 2018 Report Posted March 22, 2018 See Tom's response: FYI my client called the marketplace and was told the same 1 Quote
BulldogTom Posted March 22, 2018 Report Posted March 22, 2018 The rules are only for full year income as far as I know. Judy gave me some great advice a couple years ago about getting them under the 400% level by making an IRA contribution. Is that a possibility here? The dollars contributed to the IRA may be partially or completely recovered. Other than that, I have nothing but political commentary to share with you, which will get @jklcpa on my case, so I won't do it. Except to say that this frikkin' law is stupid as $h1t. Sorry Judy, I could not help myself, you can whip on me now. Tom Modesto, CA 4 1 Quote
grandmabee Posted March 22, 2018 Report Posted March 22, 2018 Yes Try an IRA. I had one who had to pay ALL back because of the 401% but they put in 1500 IRA and it went below the 401% and only small pay back. They can use any refund to fund the IRA also as in my case. 4 Quote
RitaB Posted March 22, 2018 Report Posted March 22, 2018 It is also possible that they would save by filing separately. I know the law says you can't get PTC if you're MFS, but what happens is they don't qualify for any PTC, correct, but the payback is limited. It seems so wrong because it really is incredibly unfair for someone whose income was too high to qualify for the credit to somehow get away with not paying it all back, but there are the two loopholes. They are legal and I'm with Tom on this law from h e double hockey sticks. 4 1 Quote
jklcpa Posted March 22, 2018 Report Posted March 22, 2018 I agree with the others to see if the IRA will help. The other suggestion that is in a similar vein is to contribute to an HSA, and that requires that the plan be eligible. If eligible and if the TP has existing medical expenses they are planning to spend out-of-pocket, it shifts the deduction from Sch A to an above-the-line deduction for AGI, and they can access the funds right away for bills they'd be paying anyway. 2 Quote
BulldogTom Posted March 22, 2018 Report Posted March 22, 2018 2 minutes ago, jklcpa said: I agree with the others to see if the IRA will help. The other suggestion that is in a similar vein is to contribute to an HSA, and that requires that the plan be eligible. If eligible and if the TP has existing medical expenses they are planning to spend out-of-pocket, it shifts the deduction from Sch A to an above-the-line deduction for AGI, and they can access the funds right away for bills they'd be paying anyway. I thought about the HSA angle, but they would have had to bought a plan on the exchange that qualified for an HSA in the first place, correct? Tom Modesto, CA 1 Quote
jklcpa Posted March 22, 2018 Report Posted March 22, 2018 51 minutes ago, BulldogTom said: I thought about the HSA angle, but they would have had to bought a plan on the exchange that qualified for an HSA in the first place, correct? Tom Modesto, CA Yes, exactly so. Also, don't worry about the cussing because there are plenty of aspects about this that I don't like either. 2 1 Quote
Lion EA Posted March 22, 2018 Report Posted March 22, 2018 Did the employer plan later in the year include an HSA/HDHP? Otherwise, IRA. Final try, MFS. 2 Quote
joanmcq Posted March 27, 2018 Report Posted March 27, 2018 IRA to get you to 400%. Had a client that required $1600 to IRA. Saved them $4000. 2 Quote
Tax Prep by Deb Posted March 27, 2018 Report Posted March 27, 2018 Better to pay yourself than to pay back that much. 3 Quote
schirallicpa Posted March 28, 2018 Author Report Posted March 28, 2018 got them to change their IRA to traditional from Roth and saved them a bundle!! Thank you!!!!!!! 4 1 Quote
BulldogTom Posted March 28, 2018 Report Posted March 28, 2018 Awesome. This is why you do this crazy job? For when you can really help a client - LEGALLY! Tom Modesto, CA 4 Quote
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