All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 1
Registered: ‎12-15-2017

Underestimated my income this year -- how do I send in payment?

Hello. We have insurance through the Health Insurance Marketplace. This past year, I ended up making significantly more than I thought I would and didn't think to adjust my income in the marketplace in time. Now, I know I am going to have to pay the IRS back.

 

My question is: Can I start making payments now to avoid all or some of the penalties? If so -- how do I do that? I know how to make quarterly estimated payments online. Do I pay in the same spot or somewhere else? Do I need to attach it to a certain form, or can I just send money to lower my overall balance? 

 

I've searched all over online and can only find information for tax time. I'd like to start paying it back now (unless there is some reason not to).

 

Thanks!

 

--Brittany

Associate (Pioneer)
Posts: 10
Registered: ‎01-08-2018

Re: Underestimated my income this year -- how do I send in payment?

Hi, Brittany4,

 

Welcome to H&R Block community!

 

The amount of premium tax credits repayment depends on the income level you reported to Health Insurance Marketplace and your actual income level. The timing of your payment does not affect it. In other words, the amount you pay now would be the same as the amount you pay when you file your income tax return, assume that you file the return before the due date. The IRS will begin accepting returns on January, 29, 2018. Hopefully, that clears it out.

 

Feel free to let me know if you have any further questions.

 

Leah

Tax Research Specialist