Healthcare Tax Credit Payback Amount

Question

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?

alexr1970 · Answer

Thank you! This is very helpful!

AlexO · Answer

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.