Skip to main content
March 21, 2022
Question

I submitted 1095-A for my Mother-in-law(FilingJointly) received affordable healthcareWA. After this due to the AdvanceTaxCredit my tax due increased. Is it expected?

  • March 21, 2022
  • 1 reply
  • 0 views
Mother-in-law is a dependent and unemployed for the whole year. We are filing taxes jointly along with my family.

1 reply

March 21, 2022

Yes, entering your mother-in-law's healthcare information can increase your taxes. Every month, to make the coverage more affordable, she probably received a credit to reduce the cost of her insurance. At the end of the year, you reconcile how much credit she got with how much she should have gotten. The calculation to determine how much she should have gotten is based on the income for the entire household. Since you are claiming her as a dependent, your income is included in the calculation. 

 

If she received too much credit each month based on your household income, you now have to pay back some of it on your tax return. If she did not receive enough credit, then the additional credit would be added to your tax return.