We have health coverage for my mother and our reported income to marketplace is 12k but what if it falls below 100% poverty line of $11490 (we are not sure yet as her income is not consistent) ..and if we file income tax return for less than 100% poverty line she will not be eligible for premium tax credits for year 2015 but what will happen to tax credits she already received for year 2014???? Will IRS ask her to pay it back to IRS?
It would also be a good idea to call and speak to someone at healthcare.gov.
In general I've found them to be helpful
This may not apply to your mothers situation, but I can compare it to what I am experiencing this year.
I initially gave healthcare.gov what I believed my income would be for 2014, when applying for a policy.
Subsequently, I decided not to work much this year, and only had some random income, and dividends. I'm married, but my spouse is on Medicare, so I got a policy just for myself. I made so little income this year non of his social security income will be taxable.
My taxable income as of the middle of October, and projected for the rest of the year, was not going to meet the 100% of the poverty line. I was alarmed to see that if taxable income dropped below that level, I'd be obligated to pay for the rest of the premium.
I solved the problem by figuring out how much I was going to be short, and I'm going to be able to earn a little more than the difference by doing things like walking neighbors and relatives dogs, running errands etc.
Otherwise, yes, I would owe the IRS the credit back. yikes, I feel your pain/shock.
Is there any way you can report a little extra income for your mother? It looks like she would only have to earn a few hundred dollars by the end of the year. Perhaps she could earn money from you for babysitting, housesitting, providing some sort of service for you or a friend? It's crazy, your income could literally drop $1 below the line and your screwed.
I take it your mother isn't medicare age.
If her income isn't up to a certain level, could she apply for medicaid (as opposed to medicare)?
I live in Texas and the rules are somewhat different here. I couldn't qualify in any event for medicaid because of assets.
I suggest you go to this website below and punch different figures in for different incomes for your state, and see what you come up with.