I am $21 (400.13%) above the Federal Poverty Line pertaining to qualifying for the Premium Tax Credit (PTC). Will the IRS work with me or will I have pay back the entire advanced payment ($2,310) of the PTC? Did my best to stay within the income range but a $40 dividend increase put me over. Any suggestions or ideas on how to solve this problem? Thanks in advance!
The instructions for Form 8962 imply that you must hit 401% (which you wouldn't) in order to be disqualified entirely. Try filling out the form and see if you hit 401%.
Alternatively, you can lower your Adjusted Gross Income (AGI) by contributing to a traditional IRA or a Health Savings Account (HSA). These contributions can be deducted from your AGI if made before April 15. For an IRA contribution check out Form 8880 and for HSA, use Form 8889. Since you're only over by a little bit, you wouldn't need to contribute much ($21) to get below the limit.