Question

Premium Tax Credit and an uneven income througout the year.

Forum|Forum|4 years ago
February 23, 2022
1 reply
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I worked very few hours last year for two months. Made about $200 per month. During this time I signed up for ACA - California Covered Care. Then YEAH! Found a full time job with benefits including health insurance and cancelled ACA. Worked and made a good living. So extremely poor for two months and then stable for ten months.

Received my 1095-A from ACA and did my taxes. TurboTax calculated a pay back of the Tax Premium Credit by dividing my yearly annual income for 2021 by 12. Well that's not how I lived. This means EVERYONE who gets a job gets dinged for being on ACA. What's up with that. Seems like we should be able to break down our income by months.

Is there another way to calculate the Premium Tax Credit.

V

Vanessa A

No, there is not an another way to calculate the Premium Tax Credit that takes into consideration that your income varied throughout the year.

Basically, when you enrolled in the marketplace coverage, they used your annual income based on what you were earning at the time and divided that by 12. When you file your taxes at the end of the year, it is a reconciliation of what the Marketplace used for your annual income compared to what your income actually was.

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