Healthcare Marketplace Subsidy

Forum|Forum|7 years ago
June 1, 2019
1 reply
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The eligibility notice showed a monthly subsidy of $234 per month for 2015 filed in 2016. We utilized $80 - $100 per month. Out income was $1000 over our prediction. At filing date we owed $700 in reconciliation..? Where did we go wrong..?

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Best answer by TaxGuyBill

Unfortunately, it is almost impossible to say for sure. First, double check that Line 3 of Form 8962 shows that number that you told the Healthcare Marketplace. Also, what is the number on Line 5?

Here are a few of the most common reasons:

You have fewer people on your tax return than you had told the Marketplace.
When you estimated your income, you did not include non-taxable Social Security or tax-exempt interest.
When you estimated your income, you used the "taxable income" after your personal exemptions and Standard Deduction (or Itemized Deductions) were taken.
When you estimated your income, you did not include your dependent's income.
The Marketplace interview was phrased really poorly, making you enter something wrong in the Marketplace application (particularly about dependents, or insured kids who are not dependents).
The Marketplace just completely miscalculated things. Yes, I've seen several situations where that seems to be the case.

As a side note, if you were eligible for $234 per month, how did you only use $80-$100 per month? Is that an option in the Marketplace application?

T

TaxGuyBillAnswer

Employee

Unfortunately, it is almost impossible to say for sure. First, double check that Line 3 of Form 8962 shows that number that you told the Healthcare Marketplace. Also, what is the number on Line 5?

Here are a few of the most common reasons:

You have fewer people on your tax return than you had told the Marketplace.
When you estimated your income, you did not include non-taxable Social Security or tax-exempt interest.
When you estimated your income, you used the "taxable income" after your personal exemptions and Standard Deduction (or Itemized Deductions) were taken.
When you estimated your income, you did not include your dependent's income.
The Marketplace interview was phrased really poorly, making you enter something wrong in the Marketplace application (particularly about dependents, or insured kids who are not dependents).
The Marketplace just completely miscalculated things. Yes, I've seen several situations where that seems to be the case.

As a side note, if you were eligible for $234 per month, how did you only use $80-$100 per month? Is that an option in the Marketplace application?

M

mark-page56Author

Employee

Thanks Sincerely for the reply...and "yes" we were allowed to utilize any portion of the over-estimated subsidy. This year we are told we have over $500 per month as a subsidy for 2017..?