What Happens if you Make Less than Expected on ACA and Received Advance Tax Credits?
The Affordable Care Act (ACA) provides tax credits to help people afford health insurance. These credits are paid in advance and are based on your estimated income. If you end up making less than you expected, you may have to repay some of the tax credits.
How much will you have to repay?
The amount you have to repay depends on your income. If your income is below 100% of the federal poverty level (FPL), you will not have to repay any of the tax credits. If your income is between 100% and 400% of the FPL, you will have to repay a portion of the tax credits. The amount you have to repay is capped at the amount of tax credits you received.
Will this affect your ability to get Advance Tax Credits for 2018?
No, this will not affect your ability to get Advance Tax Credits for 2018. Your eligibility for Advance Tax Credits is based on your estimated income for the year. If your income for 2018 is expected to be below 400% of the FPL, you should be eligible for Advance Tax Credits.
What should you do if you think you will have to repay Advance Tax Credits?
If you think you will have to repay Advance Tax Credits, you should contact the IRS. The IRS will be able to help you determine how much you owe and set up a payment plan.
Here are some additional things to keep in mind:
You can only receive Advance Tax Credits if you have health insurance coverage through the Health Insurance Marketplace.
The amount of tax credits you receive is based on your income and the number of people in your household.
You must file a tax return to claim Advance Tax Credits.
If you do not repay the Advance Tax Credits that you owe, the IRS may reduce your tax refund or take other collection actions.
If you have any questions about Advance Tax Credits, you should contact the IRS or a licensed agent.
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