Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-21-2015, 11:14 AM
Junior Member
 
Join Date: Feb 2015
Posts: 2
Obamacare Tax Credit

I qualified for a tax credit on my health insurance based on my low fixed (social security) income...I received the tax credit MONTHLY...in July I made a significant withdrawal from my IRA which increased my income for 2014. Now I am working on my 2014 taxes and discover that I lost the tax credit based on my income and have to pay it back on my 2014 return.

MY QUESTION IS...CAN I TAKE THE TAX CREDIT FROM JANUARY THROUGH JUNE AND PAY-BACK THE CREDITS TAKEN AFTER THAT JULY WITHDRAWAL...OR DO I HAVE TO PAY-BACK THE ENTIRE YEAR????



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-21-2015, 04:45 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by tomfitz94 View Post
I qualified for a tax credit on my health insurance based on my low fixed (social security) income...I received the tax credit MONTHLY...in July I made a significant withdrawal from my IRA which increased my income for 2014. Now I am working on my 2014 taxes and discover that I lost the tax credit based on my income and have to pay it back on my 2014 return.

MY QUESTION IS...CAN I TAKE THE TAX CREDIT FROM JANUARY THROUGH JUNE AND PAY-BACK THE CREDITS TAKEN AFTER THAT JULY WITHDRAWAL...OR DO I HAVE TO PAY-BACK THE ENTIRE YEAR????
it depedns; since it turns out you underestimate your 2014 income and you already benefited from premium assistance payments, you’ll have to pay them back to the IRS when you file your 2014 income taxes. The amount you’ll have to pay back depends on your 2014 family income. If your 2014 income is below 400% of the federal poverty level, there is a cap on the amount you’ll have to pay back, even if you received more in assistance than the amount of the cap. However, at higher income levels, you’ll have to pay back the entire amount you received, which could be a lot. When you apply for Obamacare through your health insurance exchange, you need to estimate what your family income for 2014 will be. If you estimate it will be below 400% of the federal poverty level for a family your size, you will be eligible to receive a subsidy to help pay your monthly insurance premiums. The amount of the premium assistance is based on your estimated income and the amount of your health insurance premiums. This premium assistance can be worth thousands of dollars per year.please contact an IRS enrolled agent/ CPA in your local area fro more info in detail.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 02-21-2015, 07:25 PM
Junior Member
 
Join Date: Feb 2015
Posts: 2
That's what I was afraid of...I was hoping I could at least take the credit from January through June when my income was still at the poverty level, then pay-back those credits from July through December (after the IRA withdrawal in July).

It's a double whammy since I also have to pay tax on that withdrawal as income! I am getting nailed big time this year...I may have to close out my IRA to pay the taxbill!

Nothing "GOLDEN" about these years.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
ObamaCare penalty myexbossisoutforrevenge For 2013 0 03-07-2014 06:33 PM
How can a Taxpayer avoid the Obamacare Tax Penalty? TaxGuru Medical 0 02-04-2014 03:38 PM
Child tax credit makes mortgage interest credit null? ianpreston Tax Credit 0 03-04-2011 01:35 PM
First-Time Homebuyer credit a new tax credit Samatg For 2008 7 05-07-2010 02:44 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.