ACA subsidy payback at tax time? Form 8962 + 1095-A reconciliation can trigger a surprise bill when your MAGI ends up higher than expected. In this episode, I’ll you'll learn why it happens, how to fix it, and how to prevent it next year.

If you had Marketplace coverage and your tax software suddenly says you owe thousands, you’re not alone. Here’s the real reason: the ACA premium tax credit you received during the year is an *advance* based on your estimated income. At tax time, the IRS “settles up” using Form 8962 and your Form 1095-A.

In this episode, you’ll learn:

✅ Why you can owe money back (even if nothing felt “wrong” during the year)

✅ The exact forms involved (1095-A + Form 8962)

✅ The 3 most common reasons people get hit with a payback

✅ How to check for (and fix) a wrong or corrected 1095-A

✅ The two simple levers to reduce the risk of a nasty surprise next year

✅ A quick “sanity check” that catches expensive mistakes fast

Helpful official resources:

▶️ How to use / review Form 1095-A (Healthcare.gov): https://www.healthcare.gov/tax-form-1095/

▶️ IRS: About Form 8962 (Premium Tax Credit): https://www.irs.gov/forms-pubs/about-form-8962

▶️ IRS: Corrected / incorrect / voided Form 1095-A guidance: https://www.irs.gov/affordable-care-act/corrected-incorrect-or-voided-form-1095-a

▶️ IRS payment plan options (Online Payment Agreement): https://www.irs.gov/payments/online-payment-agreement-application

▶️ Department of Health and Human Services 2025 FPL Levels (2026 ACA uses 2025's FPL levels): https://aspe.hhs.gov/sites/default/files/documents/dd73d4f00d8a819d10b2fdb70d254f7b/detailed-guidelines-2025.pdf

Listen to these episodes next (mentioned in this episode):

▶️ “ACA MAGI: How to Calculate & Manage It for Big Savings!” 

▶️ “ACA Premium Shock? Pay Less All Year.” 

Free Resources (mentioned in this episode):

📊 Free MAGI calculator Excel template: https://payhip.com/b/BsTwX

📊Free 12-Step Early Retirement Planning Checklist: https://payhip.com/b/IBj3q

📊Free eBook: ACA Premium Shock Fix, 10 Ways to Pay Less for Marketplace Coverage All Year Long: https://payhip.com/b/TGHts

📺 When you're not on the go, check out my Early Retirement Roadmap YouTube Channel: https://youtube.com/@EarlyRetirementRoadmap?sub_confirmation=1

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DISCLAIMER: This podcast is for educational purposes only and reflects my personal experience and research. It is not financial, tax, legal, or investment advice. Always consult with qualified professionals before making major retirement or financial decisions. I am not responsible for any loss or damages resulting from reliance on this information.