Do I have to pay back premium tax credit?

A tax credit you can take in advance to lower your monthly health insurance payment (or “premium”). If at the end of the year you’ve taken more premium tax credit in advance than you’re due based on your final income, you’ll have to pay back the excess when you file your federal tax return.

How will the premium tax credit affect my tax return?

How advance credit payments affect your refund. If the premium tax credit computed on your return is more than the advance credit payments made on your behalf during the year, the difference will increase your refund or lower the amount of tax you owe. This will be reported on Form 1040, Schedule 3.

How do you qualify for the premium tax credit?

To be eligible for the premium tax credit, your household income must be at least 100 – but no more than 400 – percent of the federal poverty line for your family size, although there are two exceptions for individuals with household income below 100 percent of the applicable federal poverty line.

Is there a tax credit for health insurance premiums?

In claiming the health care tax credit, you’ll receive a reduction in the amount you pay when you next pay your health insurance premiums to your insurer. You are able to complete a Medicare rebate claim form and present this to your insurer to nominate your tier.

What is APTC subsidy?

The Advanced Premium Tax Credit (APTC) is a federal subsidy available to individuals and families who earn less than 400% of the Federal Poverty Level ( FPL ).

How to reconcile your Premium Tax Credit?

How to Reconcile Your Payments . The first part of Form 8962 calculates the actual amount of the Premium Tax Credit to which you were entitled. Then you’ll fill out the second part to compare and reconcile the advance payments with the actual amount of the Premium Tax Credit you received.

What is ACA premium credit?

The Advanced Premium Tax Credit is a credit in the Patient Protection and Affordable Care Act (ACA, also referred to colloquially as Obamacare), signed into law on March 23, 2010 by President Barack Obama.

How do you calculate a premium tax credit?

To compute the premium tax credit, a taxpayer determines his or her contribution amount by multiplying an applicable percentage by the taxpayer’s household income. These amounts are adjusted to reflect the excess of the rate of premium growth over the rate of income growth for the preceding calendar year.