This is one of those unintended consequences of the PPACA
The law says APTCs are obtainable by persons with MAGI of 100%-400% [600% CA] FPL. This is a unique situation and I don’t believe Congress expected this as the norm. But the law is the law, and the IRS will either allow or disallow the APTCs.
Personally, I think the IRS will allow the APTCs since this person is obviously a “taxpayer” not a welfare recipient. Otherwise, it would make a great case in Tax Court. MAX max herr insurance services.com
reply from Covered CA —
Response By Email (R) (02/10/2016 12:22 PM)
Good day Steve Shorr, Once you update their income, and it’s reflecting the negative income then they will be up for review. Please let me know if you need further assistance.
Get quotes here for CA,
Businesses and individuals will frequently reduce their reportable revenues or increase their reportable expenses for tax purposes in order to reduce their tax payments. Thus, an entity may report a tax loss at the same time that it reports a profit under generally accepted accounting principles or international financial reporting standards. Accounting Tools.com
If you qualify for Medi-Cal, no one can force you to use it. You can still buy a regular policy from any Insurance Company. No extra charge for our services. You just won’t get subsidies.
Our page on the Premium Tax Credit IRS #8962 & Instructions
View our page on how the APTC Advance Premium Tax Credit is Calculated CFR §1.36 B – 3
Insure Me Kevin.com where guy had to pay back subsidies as Covered CA didn’t add that back in for line 37 MAGI.
Insure Me Kevin.com inflating income to avoid Medi-Cal
Fudging the income? Fraud & False Statements
Tax Loss Carry Forward
Turbo Tax Video How to Claim Tax Credit
Video Importance of Reporting Changes - Covered CA Video
Denial of benefits and possible criminal charges if you don't report changes in income!
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Explanation of Advance Premium Tax Credit -
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