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If I Underestimate My Income to Get a Subsidy, What Will Happen?




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    Let's start by saying someone should do something about this. The low and middle income class families that had to get insurance and they miscalculated their annual income they are now having to pay the Internal Revenue Service back. And you know that those families were looking forward to that money. That's what happened to us. We miscalculated the annual income when resigning up for healthcare and now that tax time is here our tax preparer told us that because we supposedly got to much in subsidies we now habe to pay 1500 back the Internal Revenue Service . Who is looking out for the little people. A healthcare system that was suppose to help low and middle class families is actually hurting them in the long run. Can someone help please.

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    Deborah Cormany

    My tax return says I owe over $9000 due to the subsidy from the healthcare marketplace. I cannot pay this. What do I do??

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    Cody Michael

    Hi Deborah, 

    Your best option will be to talk to a tax professional. They will be able to walk you through all your options.

    If your income changes throughout the year, you should always report those changes to the marketplace if you receive a subsidy. 


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    Dennis Johnson

    Dennis Johnson

    I'm still in total shock. My tax return says I owe $19,500 - $17,400 of that is subsidy 100% payback because I withdrew money from 401 to pay off house and car to be able to retire on small pension of only 14 yrs. service. Took every penny to pay everything off. Told my wife, we can do it, it will be tight but we'll make it ok and than this.

    Is bankruptcy an option when you owe this kind of money, I cannot pay this.  

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    Ryan Kennelly

    Hi Dennis,

    I am sorry you are going through this. There may be ways to lower this amount or extend the amount of time to pay this amount (assuming it is accurate and not a mistake). I am not a tax professional but would suggest contacting one asap. Email me directly at ryan@ihealthagents.com if you want the name of a good referral. 

    Sorry I could not be more helpful!

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    David Steinberg

    I have 1 question with 2 parts! The first part of my question is most important.

    I am a family of 3 in Connecticut, receiving the least amount of subsidies right before the ceiling cuts us off from all Obamacare subsidies. So if I go over by $1 that will cost me ~$15,000.

    Part A) When I file my taxes in April 2019 for YEAR2018, is the cut off 400% of the poverty level for 2017 ($81,680) or 400% of the poverty level for 2018 ($83,120)?

    Part B) I have my 1 year old enrolled in Childrens Health Insurance Program (CHIP). I dont think you can answer this but wondering if you know where I can find how much I'll have to pay back. I am in the highest bracket before I dont receive assistance ($30/month with a copay).

    Any and all help you can provide will be amazing. thank you!


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    Ryan Kennelly

    Hi David,

    Part A) When filing taxes in April 2019 (for year 2018), you'll use the FPL from 2018.  Here is a follow up article that may provide some additional help: 

    What are Federal Poverty Levels Used for?

    Part B) I'm not qualified to answer that question unfortunately. I would advise reaching out to a tax professional. 

    I also found some Connecticut specific links that may point you in the right direction:




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    David Steinberg

    Thank you!

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