Excess Premium Tax Credit Repayment

What if you get too large a premium tax credit during the year?

When you enroll in an ACA Marketplace health insurance plan, your Advance Premium Tax Credit (APTC) is based on your "good faith" estimate of you income "next" year. If you earn more than your extimate, your tax credit during the year will be too large. When you file you Federal Tax return, you will have to repay part or all of the excess tax credit.

The amount of the repayment is capped for those with income is below 400% of the Federal Poverty Level (FPL).

Maximum Amount of Repayment of Excess Premium Tax Credit

Income

Individual

Family

Below 200% FPL*

$300

$600

200%–300% FPL*

$750

$1,500

300%–400% FPL*

$1,250

$2,500

400% FPL* or more

Entire amount of excess tax credit

*FPL = Federal Poverty Level and is adjusted each year to reflect inflation. The 2016 FPL is used with 2017 ACA health insurance plans.

The amount of advance premium tax credit you must pay back is substracted from you Federal Income Tax refund.

If you are entitled to a larger premium tax credit than was paid during the year, the difference is added to your Federal Income Tax refund.

The Marketplace will send you a statement by January 31 showing your premium and the amount of the premium tax credit you received. You will use this statement when you file your Federal Income Tax.