COVID-19's tax-season surprise: You may have to pay back part of your ACA insurance subsidy

After years without comprehensive health insurance, a 64-year-old woman in Media, Pa., was thrilled to learn that based on her 2019 income she qualified for a tax credit that would entirely cover the premiums for a solid 2020 plan on the state insurance marketplace. But then the pandemic hit. In an unexpected twist, her 2020 income soared to more than $50,000, thanks to unemployment payments, Social Security and IRA distributions. The woman, who asked not to be identified to protect her financial information, just found out from her tax preparer that she was no longer eligible for the credit s…

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HEDGE accordingly