ACA Headache

[rawlan]

I have a question. I have a client that told me he was W2 and made xxx per year. I enrolled him and his wife in a Healthcare.gov account with a subsidy. He files his taxes and owes the subsidy because of a dividend he receives. He actually owns the company. He did not disclose this to me. Now he is threatening a lawsuit. Am I responsible?

 

[Yagents]

I have a question. I have a client that told me he was W2 and made xxx per year. I enrolled him and his wife in a Healthcare.gov account with a subsidy. He files his taxes and owes the subsidy because of a dividend he receives. He actually owns the company. He did not disclose this to me. Now he is threatening a lawsuit. Am I responsible?

First off, if this is for the 2020 tax year only, the ARPA law eliminated any tax credit clawback, no matter what your income is. Google it.

Second, it is MAGI, not just w2 income. He knew he made more money then his w2, and should have known before taking $ from the govt on a loan basis.

Clawbacks Happen all the time for various reasons, and doubt they would win unless he has proof you said only w2 income counts. Your only loss will be lawyer fees. Hopefully first point above solves problem.

 

[DonP]

Why doesn’t Health Sherpa or Aca require the applicants sign a form like “ I agree I estimate my 2021 income to be x amount “ Heck using Health Sherpa the applicant signs nothing . I guess a way around this is do a 3 way call directly with healthcare.com .

 

[Yagents]

Sherpa does say it, and so does the marketplace when u click all those boxes that nobody ever reads.