QUESTION

What’s the most I would have to repay the IRS?

Individuals with no coverage | Comparing Plans: Benefits and Costs
ANSWER

That depends on what your actual income turns out to be and your tax filing status. There are repayment limitations for those whose income is below 400 percent of the federal poverty level.

In most years, if your income goes over 400 percent of the federal poverty level you will have to repay the full advance premium tax credit amount you received. If your actual modified adjusted gross income is higher than what you projected but less than 400 percent of the federal poverty level, there are repayment limits based on income. Note that, under COVID-19 relief legislation, for plan years 2021 and 2022, there is no income limit on premium tax credits so you won’t lose eligibility. However, you may still have to pay back premium tax credits if you underestimate your income. On your tax return, you will compare the actual amount of advance premium tax credit you received during the year to the amount you should have received based on your modified adjusted gross income, and then pay back the excess up to the repayment limit. Note, however, that taxpayers won’t have to repay excess premium tax credits for coverage they had in 2020. (Questions and Answers on the Premium Tax Credit, 26 C.F.R. § 1.36B-4; IRS Suspends Requirement to Repay Excess Advance Payments of 2020 Premium Tax Credit, April 9, 2021).

Income % of FPL

Single filing status

Married filing status

Less than 200

$300

$600

At least 200, but less than 300

$750

$1,500

At least 300, but less than 400

$1,250

$2,500

Individuals with no coverage
Individuals with coverage
Coverage for small employers
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