Does IRS waive penalty for Healthcare Marketplace when income falls well below poverty level?
Our 25-year-old adult daughter with multiple disabilities qualified for a 2024 Healthcare Marketplace subsidy based on a projected income of $16,000. However, her job ended unexpectedly in July, and she has been unable to find work (even part-time). Her income will fall well short of the projected income…and the federal poverty level. Her Mon and I are on Social Security and could not add her to our policy. She was denied state-based medical coverage because she did not qualify. Additionally, she has no savings or assets. I have been told the IRS will "waive" the penalty because of her falling below the federal poverty level. What is your opinion?
Answers
-
Hello! Thank you for contacting the FreeTaxUSA Community.
The IRS does have options to waive the penalty based on different scenarios. If you have had a life changing event, you need to report the event to the Marketplace when it happens. Here is a link to the IRS for additional information pertaining to the Premium Tax Credit and any penalties pertaining to it.
https://www.irs.gov/affordable-care-act/individuals-and-families/premium-tax-credit-claiming-the-credit-and-reconciling-advance-credit-payments
