Excess Advance Premium Tax Credit Repayment

What if you get too large an Advance Premium Tax Credit (APTC) during the year?

When you enroll in an ACA Marketplace health insurance plan, your Advance Premium Tax Credit is based on your "good faith" estimate of you income "next" year. If you earn more than your extimate, your Advance Premium 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 Advance Premium Tax Credit.

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

Maximum Amount of Repayment of Excess Advance Premium Tax Credit

Income

Individual

Family

Below 200% FPL*

$300

$600

200%–300% FPL*

$775

$1,550

300%–400% FPL*

$1,300

$2,600

400% FPL* or more

Entire amount of excess tax credit

*FPL = Federal Poverty Level. The Federal Poverty Level is adjusted each year to reflect inflation. The 2019 FPL is used with 2020 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.