§1412

We hold that the Abregos are liable for the tax subject to limitations; and 2.

at 231, allows the Secretary to authorize APTC payments on behalf of qualifying taxpayers. In such circumstances a taxpayer elects to have the Bureau of Fiscal Services pay the APTC directly to her insurance carrier to help cover the cost of insurance premiums during the year. ACA § 1412(c)(2)(A), 124 Stat. at 232. The amount of t

at 231, allows the Secretary to authorize advance payments of the PTC, known as the APTC, on behalf of qualifying taxpayers. In such circumstances, a taxpayer elects to have the Bureau of Fiscal Services pay the APTC directly to her insurance carrier to help cover the cost of insurance premiums during the year. IRM 21.6.3.4.2.12(7

to individuals who enroll in qualified health plans during a year for which they are likely to qualify (at the end of such year) for the Premium Tax Credit (PTC) under section 36B. See Patient Protection and Affordable Care Act, Pub. L. No. 111-148, § 1412, 124 Stat. 119, 231–33 (2010). The PTC is a tax credit designed to offset the costs (for those who meet certain financial eligibility criteria) of enrolling in health insurance through a qualifying state or federal exchange. A taxpayer’s PTC i

and this opinion shall not be treated as precedent for any other case. Petitioner, Connie Sue Heston, received advance Premium Tax Credits (APTC) during her 2017 tax year.2 See Patient Protection and Affordable Care Act (ACA), Pub. L. No. 111-148, sec. 1412, 124 Stat. at 231 (2010) (codified at 42 U.S.C. sec. 18082 (2012)). That same year, she also received a lump-sum distribution through the Social Security Administration (SSA) for disability benefits relating to the 2015, 2016, and 2017 tax ye

ingly, APTCs are paid directly to an insurance provider during the year, and taxpayers are required to reconcile any APTCs received with the eligible credit amount on Form 8962, which is filed with their Federal income tax returns. Sec. 36B(f); ACA sec. 1412, 124 Stat. at 231 (codified at 42 U.S.C. sec. 18082 (2012)); see also Johnson v. Commissioner, 152 T.C. 121, 124 (2019). C. MAGI and Social Security Benefits Section 86(d)(1) defines “social security benefit[s]” as “any amount received by th

ble individual to wait until after filing a tax return to realize the benefit ofthe PTC, the ACA provides for APTC payments if the individual qualifies under an advance eligibility determination. McGuire v. Commissioner, 149 T.C. at 260 (citing ACA sec. 1412(a)(3), 124 Stat. at 232 (codified at 42 U.S.C. sec. 18082(a)(3) (2012))). The Secretary ofthe Department ofHealth and Human Services (HHS Secretary) is required to determine whether individuals enrolling in qualified health plans through a m

idual to wait until after filing a tax return to realize the benefit ofthe PTC, the ACA provides for the advance PTC payments ifthe individual qualifies under an advance eligibility determination. McGuire v. Commissioner, 149 T.C. at 260 (citing ACA sec. 1412(a)(3), 124 Stat. 5The applicable percentage is computed by first determining the percentage that the taxpayer's household income bears to the FPL for the taxpayer's family size. Sec. 1.36B-3(g)(1), Income Tax Regs. The resulting FPL percent

APTCs are paid - 6 - directly to an insurance provider during the year, and taxpayers are required to reconcile any APTCs received with the eligible credit amount on Form 8962, which is filed with their Federal income tax returns. Sec. 36B(f); ACA sec. 1412, 124 Stat. at 231 (codified at 42 U.S.C. sec. 18082 (2012)). I. Modified Adjusted Gross Income The parties' dispute concerns whether petitioner is entitled to any part ofthe PTC. Before we are able to decide the amount ofany credit, we must f

1412(c)(2)(A), 124 Stat. at 232 (codified at 42 U.S.C. sec. 18082 (2012)). APTCs made on behalfofa taxpayer or members ofthe taxpayer's household, including dependent children, must be reported on the taxpayer's Form 1040. Ifthe amount ofthe APTCs exceeds the PTC to which the taxpayer is - 6 - [*6] entitled, the excess increases the tax owed

1412, 124 Stat. at 231, permits the Secretary to authorize advance payments ofthe PTC directly to a taxpayer's insurance carrier. Advance payments require an estimate ofthe amount ofthe PTC which the taxpayermay be entitled to claim on his tax return. M 4; Internal Revenue Manual pt. 21.6.3.4.2.16(6) (Oct. 1, 2014). -7- Section 1.36B-2(b)(6)(

at 231 (codified at 42 U.S.C. sec. 18082 (2012)). Taxpayers must report the advance payments on their tax return and reconcile the advance payments with the allowable premium assistance credit as determined on the basis ofincome reported on their return. Sec. 36B(f)(2); sec. 1.36B-4(a)(1)(ii)(A), Income Tax Regs. Ifthe advance

1412, 124 Stat. at 231, allows the Secretary to authorize advance payments ofthe PTC, known as the APTC, on behalfofqualifying taxpayers. In such circumstances, a taxpayer elects to have the Bureau ofthe Fiscal Service pay the APTC directly to his insurance carrier to help cover the cost ofinsurance premiums during the year. Internal Revenue M