It is not based on monthly income, it is based on your total income for 2023 - as well as your zip code and family size. You received a premium subsidy based on your situation early in the year. Since you did not qualify for the discounts (based on your total income), those discounts are being paid back on your tax return.
The Premium Tax Credit works differently than most. The premium tax credit was available immediately when you enrolled in a plan through the Marketplace. It worked like a discount so you could get help to pay for coverage throughout the year rather than having to wait until you filed your 2023 taxes. Payments of the premium tax credit went directly to the insurance company to pay a share of the monthly health insurance premiums charged to you. The amount was calculated based on what you estimated your 2023 income would be, along with how many people your plan needed to cover and where you lived.
Now that you are reporting your actual 2023 income, ZIP code, and family size, we used this info to calculate the discount you should've received throughout the year, and made the necessary adjustment. The discounts you received were based on your estimates when you enrolled. If your actual situation turns out to be different from your estimates, you may need to re-pay premium tax credits that you did not qualify for.
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