Buffalo Grove, IL asked in Employment Law and Tax Law for Illinois

Q: What can I do if my income puts me just over the Obamacare cliff and I have to pay an extra 20k in taxes?

My income puts me just over the 400% threshold. If I made a little less I would not owe very much in taxes but now I owe 20k because I have to repay the full health insurance tax credit and I can’t afford it.

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2 Lawyer Answers
Linda Simmons Campbell
Linda Simmons Campbell
  • Tax Law Lawyer
  • Burlington, CT

A: The first thing I would advise is to have your return prepared by a good CPA if you have not already done so. Make sure you use a good CPA and not a national chain. They may find some deductions that you were not aware you could take. After that if you still have a large balance due, contact a good tax attorney for advice on the best collection alternative. Stay away from the places you see advertised on TV and use someone you find on Justia. Most of us offer a free consultation.

Bruce Alexander Minnick agrees with this answer

A: Since all income tax assessments are based upon a percentage of taxable income it is impossible to pay in more taxes than your taxable income. The same basic rule applies here: If you owe the government the $20,000 Obamacare tax credit you received earlier, you must have sufficient money--somewhere--to repay the government. Hire a CPA.

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