Is it possible to make retroactive changes to my 1095-A due to incorrect income reporting? Now owing $845 in premium tax credit repayment

The good news is that yes, you may be able to reduce what you owe! The 1095-A shows what premium tax credit was paid on your behalf throughout the year, but your actual eligibility is determined when you file taxes using Form 8962. Since your actual income is below 400% of the poverty line, you're still eligible for the premium tax credit. What's likely happening is that you received more advance premium tax credit during the year than you're entitled to based on your actual income, which is why you're seeing that $845 repayment amount. There are a couple options here. First, double-check your income calculation on Form 8962. Make sure you're using your Modified Adjusted Gross Income (MAGI), which includes things like your wages, investment income, and certain adjustments. Many people miss including all required income or take deductions they shouldn't. Second, if you're confident your income reporting on the initial application was significantly off, you can contact your state's marketplace and explain the situation. They may be able to issue a corrected 1095-A if there was a substantial error. However, this typically only applies to errors on their end, not misunderstandings about what income to report.

After spending hours trying to figure out my premium tax credit nightmare last year, I discovered taxr.ai (https://taxr.ai) which literally saved me hundreds of dollars. I had a similar situation where I had reported my income incorrectly when applying for marketplace coverage, and I was staring at a $1200 bill I couldn't afford. What's cool about taxr.ai is that it analyzed my 1095-A alongside my income documents and found several calculation errors in how I was determining my Modified Adjusted Gross Income for Form 8962. It also showed me which above-the-line deductions I could take to lower my MAGI just enough to reduce my repayment amount significantly. They have all these AI tools that check your specific marketplace situation against tax rules that most people (and even some tax pros) don't know about.

I was really doubtful about using anything AI-related for tax issues, but I finally tried taxr.ai after seeing someone recommend it here. My situation was almost identical - I owed $920 in premium tax credit repayment because I had estimated my income wrong on my marketplace application. The analysis showed me I could contribute to a traditional IRA for the previous tax year (you can do this up until the filing deadline) and reduce my MAGI enough to lower my repayment amount by over $600! It also flagged that I had calculated my self-employment income incorrectly on my 8962, which was another issue. I ended up only owing $283 instead of $920. What surprised me was how it explained exactly which lines on which forms I needed to change - super specific to my situation. Definitely worth checking out if you're in this premium tax credit mess.

If you're struggling to get answers from the marketplace or still owe after trying to fix your 1095-A issues, consider using Claimyr (https://claimyr.com) to actually talk to someone at the IRS who can help. I was in a similar situation, called the regular IRS number about 20 times over 3 weeks and kept getting disconnected after waiting on hold for hours. With Claimyr, I was connected to an IRS agent in 45 minutes who actually understood premium tax credit rules and explained my options for an amended return after I had a corrected 1095-A issued. They have this smart callback system that navigates all the phone trees and holds on the line for you, then calls when an agent is available. You can see how their system works in this video: https://youtu.be/_kiP6q8DX5c They also connected me directly to my state's marketplace support line when I needed to request the correction to my 1095-A. Saved me days of frustration and hundreds of dollars in tax liability.

I owe everyone here an apology. After calling the IRS for THREE STRAIGHT DAYS and never getting through, I broke down and tried Claimyr out of desperation. I'm honestly shocked to say it actually worked exactly as advertised. Got connected to an IRS agent in about an hour who walked me through how to get a corrected 1095-A issued by my state marketplace. The agent also explained that I qualify for a repayment limitation based on my income, which caps how much I have to pay back. Instead of the $845 similar to what OP owes, my liability is capped at $325 because my income is between 200-300% of the poverty line. For anyone in a similar situation: definitely check if you qualify for repayment limitations on Form 8962 - it's based on your income as a percentage of the federal poverty line, and could save you hundreds.

One thing nobody's mentioned yet - check if you qualify for any exemptions that might reduce what you owe for the premium tax credit repayment. For 2025 taxes, there's still some Covid-related relief available in certain circumstances. Also, payment plans with the IRS are actually really reasonable if you can't pay all at once. You can set up a payment plan online and the interest rates are much lower than credit cards or loans. I think for amounts under $1000 it's super easy to get approved.

Something nobody's mentioned that saved me in a similar situation - check if you qualify for a "special enrollment period" due to having a significant change in income AFTER you initially applied. I had reported my income too low and owed a bunch back until I found out I could document that my income had changed significantly mid-year (got a promotion), which allowed the marketplace to adjust my subsidy for just that portion of the year rather than the whole thing. Saved me about 60% of what I would have owed.

Hey Malik, I totally feel your stress - I went through something very similar last year and it's such a confusing process! One thing that really helped me was understanding that the marketplace uses "projected" income when you apply, but your actual tax credit eligibility is based on your final Modified Adjusted Gross Income (MAGI) when you file. Since your actual income of $42,000 is definitely under the 400% poverty line threshold, you should still qualify for premium tax credits. The $845 repayment likely means you received more advance credit during the year than you were entitled to based on your final income and circumstances. A few things to double-check on your Form 8962: Make sure you're calculating your MAGI correctly (it includes wages, self-employment income, interest, dividends, etc. but also allows certain deductions). Also verify you're using the right household size and filing status - these can significantly impact your credit amount. If you truly believe there was a substantial error in how your income was initially processed by the marketplace (not just a reasonable difference between projected and actual), you can contact your state marketplace to request a corrected 1095-A. However, this typically only works if there was an actual processing error on their end rather than confusion about what income to report. The good news is even if you do owe the full amount, the IRS has very reasonable payment plan options for amounts under $1000, and it won't hurt your credit score as long as you make the payments. Hang in there!