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June 3, 2019
Solved

Premium Tax Credit Refund

  • June 3, 2019
  • 3 replies
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My wife and I claimed the premium tax credit. We put the info into Turbotax and now it is telling us that we can receive a $500 refund. I would like to know why we are receiving this refund (where is this money coming from) and if it will have tax implications for future years? Will this amount be added onto the amount that I get back from the government?
Best answer by Vanessa11_2

You are receiving the credit because based on your income you were eligible for more than you received in advance and because you actually paid premiums that were not all covered by the premium tax credit.

The Premium Tax Credit is based on your final income for the year.  This means you likely made a little bit less than you estimated.  If you would have made more than you estimated then you would likely have to pay a portion of the credit back.

There are no future tax implications for getting this additional amount as each tax year is handled and calculated separately. 

Yes, it is added to the amount you are getting back from the government. 

3 replies

Employee
June 3, 2019
What was the total in column A, b and C of your 1095A?
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June 3, 2019
A total = 8851.20, B total = 9745.92, C total = 6972.00
Employee
June 3, 2019

You are receiving the credit because based on your income you were eligible for more than you received in advance and because you actually paid premiums that were not all covered by the premium tax credit.

The Premium Tax Credit is based on your final income for the year.  This means you likely made a little bit less than you estimated.  If you would have made more than you estimated then you would likely have to pay a portion of the credit back.

There are no future tax implications for getting this additional amount as each tax year is handled and calculated separately. 

Yes, it is added to the amount you are getting back from the government. 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"