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10-24-2017 01:47 PM - edited 10-24-2017 02:04 PM
I estimated my income to be $14,700 for 2017. It looks like i'm going to make about $12,000. I've been receiving $304 tax credit per month for insurance I got through the healthcare.gov website. That covered my plan that was $297/month. Will I have to pay a penalty if don't make what I projected? I see the number $300 for being under 200% of the poverty level. Is that the max i'd have to pay when I do my taxes or is that $300 for each month that I had insurance?
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10-24-2017 02:54 PM
Welcome to the H&R Block community.
If you earn less than you expected to earn then you usually get some refundable credit on your tax return. However, going based on the numbers that you provided you will likely have a repayment of around $60 because the difference in what you are eligible for is only about $5 per month at these income levels. Of course I would have to know your amount from Column B of your 1095-A in order to accurately calculate your correct credit amount. If you earn $14,700 then your contribution (Column C on Form 8962) is $25 per month, and if you earn $12,000 then it's $20 per month, so again I can tell you that the difference is about $5 per month. I figured this based on a family size of just yourself, but it would be somewhat different if you have more people in your tax family.
You will end up with a repayment, but you are correct that it is limited to $300 if your income level is at less than 200% of the federal poverty line. This means that instead of repaying everything you only have to repay $300 total for the entire year through your tax refund, but your repayment will be significantly less than $300.
The health insurance tax provisions are one of my areas of expertise, so if you have any more questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)
10-24-2017 03:12 PM
Thanks for your reply... I was worried that I would have to pay it all back but as long as it's capped at $300 total that makes me feel a lot better.