Dr. Friday explains why self-employed taxpayers on marketplace insurance can face repayment surprises. She stresses updating income estimates during the year to reduce end-of-year penalty risk.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Premium tax credit rules for the marketplace. Again, guys, I am not a fan of the marketplace.
Mainly because a large number of my clients in it are self-employed, which means we can’t always control our income, and therefore we end up making too much money and get penalized.
That is never a good day when you have to tell somebody that expected to owe maybe a thousand or two that they owe five or six because of the penalty of not paying enough in the marketplace.
Make sure you have told them how much money you’re making, and if it’s going up throughout the year, you can change the amount in the system. Don’t get caught having to pay a big fine at the end.
If you need help, check us out on the web at drfriday.com.
You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.