The IRS instructions ... complete quoted section where that answer was taken ... so they misquoted :
2021 and 2022 Premium Tax Credit Eligibility. For tax years 2021 and 2022, the American Rescue Plan of 2021 (ARPA) temporarily expanded eligibility for the premium tax credit by eliminating the rule that a taxpayer is not allowed a premium tax credit if his or her households income is above 400% of the Federal Poverty Line.
To be eligible for the premium tax credit, your household income must be at least 100 percent and, for years other than 2021 and 2022, 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. Remember that simply meeting the income requirements does not mean you're eligible for the premium tax credit. You must also meet the other eligibility criteria.
For information about the two exceptions for individuals with household income below 100 percent of the federal poverty line, see the instructions to Form 8962.
Here are some things to remember about how your household income affects your premium tax credit:
- The amount of the premium tax credit is based on a sliding scale, with generally greater credit amounts available to those with lower household incomes.
- If the advance credit payments made on your behalf are more than the allowed premium tax credit, you will have to repay some or all the excess for any tax year other than 2020. If your household income is 400 percent or more of the federal poverty line for your family size, you will have to repay all of your excess advance credit payments for that tax year.
- If your projected household income is close to the 400 percent upper limit, be sure to carefully consider the amount of advance credit payments you choose to have paid on your behalf.
- For tax years other than 2021 and 2022, if your household income on your tax return is more than 400 percent of the federal poverty line for your family size, you are not allowed a premium tax credit and will have to repay all of the advance credit payments made on behalf of you and your tax family members.
See the instructions to Form 8962, Premium Tax Credit (PTC), for information about the federal poverty guidelines for purposes of claiming the premium tax credit.
