No Fed repayment and California Subsidy?
View More DetailsMy client made just over the 400% for Fed and was going to have to pay back $11k in APTC. But for California, they did not get the subsidy, and on their return they qualify for the subsidy. So now with the waiver of the Federal APTC, is it accurate that they can get California subsidy even though the Fed amount was waived? CA Form 3849 shows column D as zero annual Federal PTC amount.
Comments
Yes. This question has already been asked and answered multiple times.
Please note that APTC and APAS are not subsidies, they are merely advances on an estimate of the subsidy. The subsidy is only calculated on the actual tax return, not at CoveredCA.
So you will now understand that they did not receive any federal subsidy, just an advance that they now don't have to pay back.