How to Pay Back Insurance Subsidies to IRS Because of Higher Income?

A self-employed taxpayer usually reports about $18,000 annual income (line 43). With this kind of income, the taxpayer is eligible for and uses subsidies to help pay for Silver plan medical
insurance obtained on the insurance exchange website. As result of hurricane Harvey, taxpayer’s regular Houston business was disrupted and income went down. However, taxpayer was hired to do other work related to repair of hurricane damage and total taxable income came to about $30,000.
As a result, I understand that the taxpayer will have to pay back to the IRS the excess amount of insurance subsidies that were originally based on a lower taxable income. I don’t see anything that will forgive the amount due because of hurricane Harvey. If there is something, please let me know. The only thing I see is that the IRS may set up a payment plan so that the amount due can be made in payments over time. If that is true, how does the taxpayer ask the IRS to setup a payment plan? Taxpayer has a six month extension for 2017 taxes so there is plenty of time to do this correctly.
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On Wednesday, August 8, 2018 at 6:04:27 PM UTC-7, njoracle wrote:

There is the following from Nolo Press which may be useful. Possibly your taxpayer's payback is capped at something like $750.
Steve
https://www.nolo.com/legal-encyclopedia/obamacare-tax-credits-the-pay-back-requirements-for-underestimating-annual-income.html
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snipped-for-privacy@gmail.com wrote:

Great stuff. Many thanks for posting that. Just what I was looking for. Thank ypu
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On 8/9/18 8:32 AM, njoracle wrote:

Please keep in mind that it is not Line 43 of the 1040 that is used for the premium tax credit. It is your household income defined as your AGI (Line 37 of the 1040) plus any foreign earned income you excluded, plus any tax exempt interest plus any social security benefits that are not taxed plus the AGI (with any tax exempt interest or untaxed social security) for any dependent you claim who has to file their own tax return because their income is above the filing threshold for dependents.
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Alan wrote:

Thanks for the advice. In this case the taxpayer does not have any of the additional items you mention so we will use AGI from line 37 with no adjustments.
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