QUESTION

If it turns out my annual income was lower than I estimated so I could have enrolled in Medicaid, do I have to pay back the premium tax credit?

Individuals with no coverage | How Premium Tax Credits And Cost-Sharing Reductions Work
ANSWER

No although your final premium tax credit amount will be determined based on your income for the year, as reported on your tax return, you do not have to pay back the premium tax credit you received. For example, you projected your income to be 140 percent of the federal poverty level, but it turns out that your annual income was 130 percent of the federal poverty level, making you eligible for Medicaid. The fact that it ended up being 130 percent of the poverty level does not mean you have to pay back the premium tax credit you received. In fact, your final credit amount will likely be larger than the amount you received in advance. (26 C.F.R. § 1.36B-4; IRS, Questions and Answers on the Premium Tax Credit.)

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