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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2192
Experience:  IRS licensed Enrolled Agent and tax instructor
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My husband works full time, his company offers health insurance.

Customer Question

my husband works full time, his company offers health insurance. I work 3 days a week and sometimes fill in for vacation coverage for other people. This year, I got health insurance through Moda health. The person who helped me get the insurance said I qualified for a tax credit. I paid $58.00 a month. When we filed our taxes, somehow we didn't qualify anymore????The reason I don't have insurance through my husbands company is it was to expensive. Now, the IRS wants me to pay the money back. I owe the IRS $3,600.00.
Our finances are completely separate. I have my own checking account, as does he. This year, I don't have insurance, as I can not afford it. Is there any way to prevent this from happening again this year?
If we file married filing seperatly, they still consider our incomes together.
But they are spate...can you help me????
Submitted: 6 months ago.
Category: Tax
Expert:  emc011075 replied 6 months ago.
Hi. My name is ***** ***** I will be happy to help you. Unfortunately, the person who helped you made a huge mistake by not including your husbands income in the calculation. For the advance premium tax credit calculation the entire household income must be considered, not just earned income or only income of the spouse applying for the coverage. You will not be eligible for any credit at all if you file separate but you may be able to reduce the repayment amount if your income is really low. You have to do the calculation if this woud work for you. It will not eliminate the entire repayment, but it may reduce it to $1500.
Expert:  emc011075 replied 6 months ago.
I see you read my respond. Do you have any questions? Is there anything else I can help you with today?
Expert:  emc011075 replied 6 months ago.
I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.
Customer: replied 6 months ago.
even though we have filed with irs already this year, is there anything we can do about that? We had a rufund of $2,400.00 but then we got a letter from the irs stating differently, they kept the refund plus, we had to give them $1,200.00 to pay back the amount of $3,600.00 My income for last year was $15,500.00.
How can I prepare myself for next year? this makes NO sense to me. Is there anything we can do for 2015 taxes???
Expert:  emc011075 replied 6 months ago.
If you already filed jointly, you cannot file amended return to file separate now.The problem is the advance premium tax credit. It is money paid by government to health insurance on your behalf. When you apply for health insurance through Market place or state exchange, you have to estimate your income for the year. Based on this estimate, insurance agent will calculate your credit. It is an advance payment from the government to make your insurance affordable. You do not see it because it is paid directly to the insurance company. At the end of the year the credit has to be reconciled with actual income. When you underestimated your income and received too much credit, the government wants their money back because based on actual income you were not eligible for it at the first place. To protect yourself, make sure that the calculation for your current year premium is based on your entire household income, yours and your spouses. Your premiums will probably go up but if you estimate it correctly or even increase it by 5 - 10%, you will not have to pay back the credit you received.

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