Taxpayer Had to Repay Excess Premium Credit Despite Exchange Not Reacting to Notice of Change in Income
The taxpayers in the case of McGuire v. Commissioner, 149 TC No. 9, were asking the Tax Court to find that they did not owe $7,805 in excess advance premium credit they had received under the Affordable Care Act (ACA). However, the Court found that it lacked the ability to grant the relief the taxpayers were requesting.
The taxpayer originally had obtained insurance from Covered California, an ACA health care exchange, for 2014. Based on the household income reported, Covered California computed that the taxpayers were eligible for an advance premium credit of $591 per month, for a total credit of $7,092. The taxpayers enrolled in a plan with a gross monthly premium of $1,181.97 per month. Due to the credit, the net premium they paid each month was $590.97.
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