Not having all your tax information I would say you probably under estimated your Income when you file for the ACA Subsidy.
You aren't the only one who underestimated your income last year and received a subsidy. For many, it's hard to know when a new job will come or what income will look like next year. The government isn't going to come after you, but you will have to pay back at least some of the subsidy on your taxes.
If you’re off just a bit, it shouldn’t make that much difference. But if you lowball it by a bundle, you could end up having to pay back most or all of those subsidies.
Here’s how it works: If you go to healthcare.gov beginning November 1st to shop for a policy, you’ll be asked to submit your estimated “modified adjusted gross income” (MAGI).
For most people, MAGI will be their estimated wages, interest and dividend income — generally, all taxable income. It also includes non-taxable Social Security benefits and some pension and annuity payments.
That MAGI amount will help determine if you’re eligible for a subsidy and how much that subsidy will be. For those on the lower-income scales, the subsidy could be substantial.
You’re pretty much on the honor system when it comes to reporting your MAGI.
However, the estimated income you claim will be checked against your actual income when you file your federal income tax return. If you earned more than you estimated, and you got a subsidy for your health insurance, you have to pay back some of the subsidy.
The maximum amount of payback is tied to your actual income. If you earn anywhere from 100% to 199% percent of the federal poverty level, your maximum payback is $300 for an individual and $600 for a family.
The maximum payback rises gradually to $1,250 for an individual and $2,500 for a family for those earning 300 percent to 399 percent of the poverty level, and, for those at 400 percent of poverty and higher, you must pay back all of the overpayment.
So, if you estimate your income at a lowly $18,000 and thus get a substantial subsidy to offset your insurance policy, and you get a much better job or have a big capital gains and your income soars — be prepared pay back that subsidy.
What you overpay or underpay is reconciled at tax time when you file your tax return.
Victor Santucci EA