An unexpected credit card debt discharge greatly increased my usually very low income, and appears to have to be used in my modified AGI on Form 8962 Premium Tax Credit. It results in me having to pay back $1500 in subsidies I received for my mandated insurance. That credit card debt is from many years ago, and wasn't paid because of financial issues that have never recovered, and I can afford this even less now. It's not as if I really had the money to pay for my insurance. Are there any options for me? Another form to supplement and help this issue, perhaps? Please help with any suggestions or solutions. Thank you!

You can use an IRS form to request a payment plan (see form 9465 or 9465FS). There are a few requirements you have to meet in order to secure this payment plan (many years to pay w/ equal payments).

If you have the ability to repay w/i 120 days, you should not use the 9465 forms; rather apply online or via phone for a Request To Pay In Full.

The IRS can even forgive the tax debt, but much paperwork needs to be done before you get to that point.

If worse comes to worse you can ask for a payment plan from the IRS.

Go online or call for Request to Pay In Full (if able to pay w/I 120 days) or do a form 9465/9465-FS.

Thank you for your ideas.