Owe on my taxes for underpaid health insurance. Anything I may be overlooking?
Long story short, I was getting a decent tax credit from being a full time student. I graduated college in December 2014 and never updated my income with the marketplace when I started working full time in January 2015. I continued to pay about $50 a month for health insurance through 2015 when I should have been in the ballpark of $250 based on second lowest silver plan cost and my income.
I chose to do this because I had high interest credit card debt and an auto loan that I wanted to get completely free from by 2016 and I did that between January and November. The extra cash every month helped me be aggressive with my avalanche payments and still save money for emergencies, our wedding, future home purchase etc. I knew all along I'd have to pay the tax money back, I'm completely fine with paying my share and staying on the level. This isn't a post requesting a way to weasel out of my obligations.
That being said, Tax Act is telling me I owe $1,250 for the credits I received. I thought I read something about the max amount being capped at a certain limit. That could be completely wrong, I don't know for sure. If it's $1,250 I truly owe, I'll pay it no problem. I just don't want to overpay if I'm missing some information.
Any advice or info about dealing with this stuff is greatly appreciated.
Posted Feb 21, 2016, 9:12 PM UTC