Vanessa A
Expert Alumni

Get your taxes done using TurboTax

Since your income went up, the amount of aid you received was based on the lessor amount, but at the end of the year it turns out you are not eligible for the aid because it is  based on your ANNUAL income not monthly.  When you get insurance through the marketplace and are paying a reduced premium because of the Advanced Premium Tax Credit based on your estimated income for the year, when you file your taxes, the amount you received is reconciled with the amount you should have received. If your income increases during the year, generally, the amount of credit you are eligible for decreases. 

 

 If you received too much, your refund will be lower or the amount you owe will increase.  If you received less of an Advanced Premium than you were eligible for, your refund will go up or the amount of taxes you owe will go down.  

 

  If your household income is more than 400% of the Federal Poverty Level, then you will be required to repay the entire amount of premiums that you received in advanced that you were not eligible for.  If your household income is less than 400% of the Federal poverty level, then you may have to pay back some but not necessarily all of the credit you were not eligible for that you received. 

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