How to Get an ACA Tax Refund After Overestimating Income
If you overestimate your income when applying for health insurance under the Affordable Care Act (ACA), you may be eligible for a tax refund. Here’s what you need to know:
How to Calculate Your Refund
The amount of your refund will depend on the difference between the income you estimated when applying for ACA coverage and your actual income for the year. The lower your actual income, the more you may be eligible to receive.
For example, let’s say you estimated your spouse’s income to be $39,000 when applying for ACA coverage. However, her actual income for the year was only $13,000. This means you may be eligible for a refund of about $1,200 (the difference between the $220 monthly premium you were paying based on the $39,000 estimate and the $109 monthly premium you would have paid based on her actual income).
How to File for a Refund
To file for an ACA tax refund, you will need to file Form 8962, Premium Tax Credit (PTC). This form is included with your federal tax return.
You can file Form 8962 online or by mail. If you file online, you may be able to get your refund faster.
Additional Tips for Getting a Refund
Here are some additional tips for getting an ACA tax refund:
File your tax return on time. The deadline for filing your tax return is April 15th (or October 15th if you file for an extension). Filing late may delay your refund.
Keep records of your income. You will need to provide documentation of your income when you file your tax return. This documentation may include pay stubs, W-2s, or bank statements.
Seek assistance from a licensed insurance agent. If you are having trouble filing Form 8962 or have questions about your ACA coverage, you can seek assistance from a licensed insurance agent.
If you have overestimated your income when applying for ACA coverage, you may be eligible for a tax refund. By following these tips, you can ensure that you receive the refund you are entitled to.
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