So, my earlier post about getting a refund on federal income tax turned out to be wrong. I got a notice that the IRS thought I underestimated my 2017 income and therefore my ACA insurance subsidy was too much.
My mistake was calculating "projected" income as my retirement income which started in the middle of the year. But for purposes of the subsidy, they count your entire calendar year income, even though I didn't start the ACA insurance until June. Even my very experienced tax accountant was confused. So, I'll be writing a check to reimburse them this year, ugh.
the rascals sent the inflated amount to my account. Guess I will get a letter later this year saying I own them? Stayed on the phone with them 20 min one day telling them that we did get our pensions last year.
They say the financial institution did not report them to the IRS, never mind that the amount has been the same for years?
My tax accountant is filing an amended return. At least I get to claim the insurance premiums in my medical cost, so it won't be a total loss. But yes, I'll have to write a check for whatever the final amount turns out to be.
Had I known this I would have opted for COBRA when I retired last year, and then started with ACA on Jan. 1st of this year. If you know of others who are retiring prior to Medicare age and will be using ACA, please let them know!
Hey I am getting money back! My income went up and I still got a more significant refund than last year. I am pretty excited, so now pay on student loan and/or go on a retreat. I hope there is still room in the retreat I really want to go on.
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