N/M posted too fast
Do you know how much you ended up owing in taxes? With the $10k in out of pocket and at least $7k in premiums, you should have a pretty massive medical expense tax write off. You can write off the medical expenses that are over 10% of your income (7.5% if you’re over 65) which should be at least 5k, and you can write off insurance premiums if you paid them yourself. I think the medical expenses affect what your income is for purposes of the ACA subsidy, but I’m not sure exactly how that works (since you’re obviously not allowed to write off the subsidized premiums, but if the write-offs affect how much your premiums are subsidized… I don’t know.)
Another vote for having someone take a second look at it.
Oh, OK, and then he ended up having an income of nearly twice that. That makes more sense now.
I had something similar happen to me. I am in California and began the year unemployed. I got a job in February, but because it takes so long for Covered California to relay that information to the insurance company and then more time for the insurance company to make the change, I ended up receiving several months worth of subsidy that I no longer qualified for.
It sucks.
Bolding mine.
When you walk into H&R Block or such, you may sit down with an enrolled agent if you’re lucky, but you’re more likely to sit down with a first-year tax preparer who doesn’t know much more about taxes than you do, in which case, they may have bypassed key questions in the software. I suggest you take this information to a local CPA or enrolled agent.
Greasy Jack
Total tax including Excess advance premium tax credit about $11,500 Taxes withheld $4,800.
My standard deduction was just a bit more than my out of pocket medical expences.
I should have been more clear; the last large Hospital expence of 2015 got billed in 2016, alas having failed to be a bit more clear has not been very helpful, my humble apoligies to those folks who have been kind enough to respond to my OP
Zuer-coli
This is exactly what happened to my cousin. She started last year unemployed, applied for the ACA and received a subsidy. Then she got a decent job with benefits (working at Panera…so not exactly raking in the big bucks). When she went to file her taxes, she discovered she owed a lot of money to pay back the subsidies. That just seems wrong.
Bears reposting!