Hello, I went on the marketplace in October and estimated an income of $115,000 because my partner, who is the only earner, works in sales, and we never really know how much will come in each year. Today, while filling out unrelated paperwork, I added up the direct deposits so far, and the total is $65,000. We are already in December. What does this mean for us, and what should I do?
When you file your taxes, you’ll use the actual income of $65,000 instead of the estimated $115,000. This means any extra tax credit owed to you will be refunded on your tax return.
Since you overestimated your income and earned less, you’ll get more tax credits refunded at tax time. This is better than the opposite situation, where you underestimate and owe money back. Just file everything correctly, and you’ll be fine.
@Scout
Thank you, this clears up a lot!
Make sure to get your 1095-A form from the marketplace in January. It’s essential for filing your taxes. Based on your actual income, any tax credits you missed out on will be credited to you when you file your return. This situation isn’t bad at all. Just keep your paperwork organized, and it should work out.
@Valentine
Thanks! I feel much better about this now.
Could it be that the $65,000 you calculated is the net income? If so, the gross might be closer to $100,000.
I’ve been in a similar situation. Let me know how this works out for you.