Failure to Earn 100% FPL and Insurance Through ACA Marketplace

[Steve333]

Jurisdiction

Georgia

State of Residence: Georgia

I am self-employed, and I ended up in a position where my total annual income for the year is less than the federal poverty level. However, I had anticipated a contract at the end of the year that would have brought my income well above this threshold, and it did not come through. Thus, I projected my income higher than it was and received the ACA subsidy for all 12 months. I did not know that this contract wouldn't come through until very recently. So, I have a few questions. First off, will I be able to reconcile this when I do my taxes? If so, do I need to call the number on healthcare.gov to notify them? Also, is this likely to lead to any sort of criminal charges against me?

 

[adjusterjack]

First off, will I be able to reconcile this when I do my taxes?

Yes. One way or another.

If so, do I need to call the number on healthcare.gov to notify them?

Of course you call them. It's in their rules that you report such things anyway. And then they will tell you exactly what you need to do. Either pay back the subsidy or pay income tax on it.

Also, is this likely to lead to any sort of criminal charges against me?

Probably not.

Unless, maybe, you try to hide something.

 

[flyingron]

No, you are not going to get criminally charged. You can fix it on your taxes when you file. If you fail to do so, most likely the IRS will "correct" it themselves and assess you the additional tax liability. Even failure to pay that will just lead to collection actions.