I have a question. I am sure I am going to owe back a lot of tax subsity this year. I made 35,000 this year and I believe this puts me in the 300% – less than 400% FPL. The max repayment is 1,250 (individual) and 2,500 (family) for this percentage. My question is if I file head of household, is that considered individual or family? It is just me and my 7 yr old. I do not want to file head of household and get slamed with the 2,500 fee. I dont know if head of household would be considered family. PLEASE HELP!!!

Hello maconway2502:

For tax purposes, your family is considered to be everyone you put on your income tax return. This applies even if you do not claim a dependent that you are eligible to claim on your return.

If you qualify as head of household, then your tax family is your seven-year old, and you.

I have not read over the 300% to 400% FPL very well. Therefore, I cannot comment on that. However, try calculating your potential tax penalty, if any, by taking your penalty to be either:

1) ($142.5) $95 for yourself + $47.50 for your child
or
2) (Your total household income minus your filing threshold) * 1%

Your penalty should be the greater of those two.

Also, try investigating if you qualify for an exemption.

I hope this helps.
Willie