How does an Advance Premium Tax Credit work?

Forum|Forum|3 years ago
November 16, 2022
2 replies
44 views

Hi!

How does an Advance Premium Tax Credit work?

Context: I am a US citizen who recently moved to the US last Aug 2022. I've been living and working overseas ever since. I purchased a Short Term Health Plant from United Care and on my bill they are deducting an amount and the line item is Advance Premium Tax Credit. I was employed overseas by a foreign company from Jan 2022 - Mar 2022 only and I've been unemployed since then.

1) Will I need to pay the total of the amount when I file and pay taxes next year? Last year i filed taxes and had a foreign earned income deducted when i filed my income tax via turbotax

2) Will I need to show a proof of my unemployment?

Thank you so much!

Not A Product Question

NCperson

Level 15

@andreasr - did you receive your medical insurance from the Marketplace (Obamacare)?

The Advance Premium Tax Credit is based on your ESTIMATED income.

Simply, when you file your tax return at the end of this year, if your ACTUAL income is higher than what was ESTIMATED, some of that advance may have to be repaid. if your ACTUAL income is LOWER than what was ESTIMATED, most if not all of the advance will NOT have to be repaid.

andreasrAuthor

Level 2

Thank you @NCperson

I'm not exactly sure. I'm based in maryland and went through the marylandhealthcareconnection.gov site and a broker called me and she helped me purchase a plan (United Health Care)