NOL Carryback and ACA

[Gail in Virginia]

If this has been discussed, I could not find it but sometimes I don't choose the right keywords.  I have a client who has an NOL generated in 2017 by his Schedule C business.  This if the first year his business did not have a profit, so I am carrying the loss back.  He also has been getting his health insurance through the marketplace with a subsidy.  Two years ago, he had to pay back about $1200  of the subsidy he received.  Now with the loss carried back to that year, he not only does not owe the repayment but is entitled to more subsidy than he actually received - about $2000 more. I haven't found anything to say that recalculating the income does or does not affect the ACA subsidy and result in refundable credit. 

Does anyone have any knowledge about this? 

TIA

[jklcpa]

Yes, you will recalculate any refundable credits that are impacted by a change in AGI, or MAGI and household income in this case.  It goes in the "after carryback" column of form 1045, and you will complete a form 8962 with the revised figures.   It's in the instructions for form 1045, line 21.  

[BulldogTom]

Judy is so darn smart.    Someday I am going to grow up and be smart like her.

We need a reaction that says we agree with the poster when they give great advice like this.   Like an "A+" or a checkmark.

Tom
Modesto, CA

[Gail in Virginia]

Thanks, Judy.  I just kept thinking this was too good to be true for the client.