Question: My income currently comes from investments. I do not know for sure what my exact income is until the end of a given year. What happens if I estimate that my income will be above the cut-off for Medi-Cal and enroll in a subsidized plan, but at the end of the year find out that my AGI is below the cutoff. You have stated in other answers that if you qualify for Medi-Cal that you cannot get a subsidy through the exchange. Will all of the advanced tax credits have to be paid back due to my income being to low.
Answer: Yes. If advance tax credits are overpaid any tax year, the overpaid amount will be recovered at the next tax filing by essentially returning the overpaid “tax credit” to the “tax due” column.