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Suppose an individual signed up with an insurance plan from the ACA between January to August of 2016 with an estimated income level of $23K annually that qualified this person for a subsidy.

In September 2016, this individual changed employment and their income rose to $38K annually and also immediately went on the employer's insurance plan, thus this person did not utilize the ACA plan or receive subsidies any longer with the new income from September 2016 to the end of the year.

Overall the total yearly income for this individual for 2016 was $32K which is $9K more than the initially declared income, but again only a portion of that annual amount ($12.3K) was earned while under the ACA plan.

When it's time to file taxes, must the person pay back some or all of the subsidy received because they made more income in the year than their estimated income when signing up even though the new income realization occurred when not utilizing the ACA plan or receiving subsidies?

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When it's time to file taxes, must the person pay back some or all of the subsidy received because they made more income in the year than their estimated income when signing up even though the new income realization occurred when not utilizing the ACA plan or receiving subsidies?

Effectively, yes, when you calculate your return, the subsidy that was estimated will not be there. You will owe taxes on any amount that you expected to be subsidized but wasn't. The amount of the subsidy that you have to repay may be capped if you make less than 400% of federal poverty level.

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