Healthcare Tax Credit Payback Amount

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Alexr1970
Alexr1970 Member Posts: 2 Newcomer
edited January 4 in General

I am an independent contractor and estimated my income for 2023 at $20000. I received an $860 per month credit to apply to my health insurance and used the full amount each month since July 2023. My income will be $0 for 2022 when I file my taxes. Will I have to payback the $860 credit for the 6 months I was covered?

Answers

  • AlexO
    AlexO FreeTaxUSA Agent Posts: 74
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    Hello, Alexr1970!

    That is a great question!

    If your income is $0, it is unlikely that you will need to pay back the credit. However, there are multiple factors at play, so it is impossible to know for certain until you prepare your return.

    I recommend logging into our 2023 tax filing service and entering estimated figures. Our software will calculate how much, if any, of the premium you need to pay back.

  • Alexr1970
    Alexr1970 Member Posts: 2 Newcomer
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    Thank you! This is very helpful!