Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Oct 10, 2023 4:19:25 PM

My refund is gigantic due to the premium tax credit. Will I have to pay it back next year?

I was going to have to pay close to $500 federally, but then I entered information for form 1095-A, and it raised my refund all the way to 16,000 because my income is so low, I qualify for a huge PTC. I am unclear about what would be considered “excess” and what I would have to pay back.

0 3 1571
3 Replies
Level 15
Oct 10, 2023 4:58:00 PM
Level 15
Oct 10, 2023 5:13:11 PM

The premium tax credit on your tax return can never be excess. Only advance premium tax credit that you received during the year can be excess. Excess advance premium tax credit means that the advance premium tax credit that you received during the year was more than the premium tax credit that you are entitled to as calculated on your tax return. Getting a large premium tax credit on your tax return will not make you have to repay any of it, as long as you accurately entered your income and other information, and Form 1095-A.

 

New Member
Oct 10, 2023 5:24:51 PM

Thank you. I had read the IRS page on PTC but was not understanding. I just don’t understand why my refund is so much this year, when my income and everything is relatively the same as past years. Being a self employed I usually have to pay money instead of getting a refund.