Got a real life example here of one of the failings of the ACA premium tax credit. So this is a family of three. In 2019 they made $84,905. Against our advice they took the credit in the marketplace. 400% of the poverty level for a family of 3 is $83,120

If we file the return as is, they would owe $9,433. That is almost all due to having to pay back the premium credit they received since they are $1,785 over the limit. Now lets say i am able to reduce their income by $1,785

That drops their balance due down to $3,204. $1,785 less income saves them $6,229 of tax. Now i am 100% certain he will suddenly find $1,785 of expenses he forgot to tell me about but let this be a lesson to all of you if your income is near those income limits.