Yes, you have to payback the Premium Tax Credit subsidy. Unfortunately, the MarketPlace health insurance Premium Tax Credit subsidy is based on your actual annual income not your employment status or what you earned on a per month basis.
Taking the Premium Tax Credit as a monthly subsidy
- The credit acts like a discount and reduces what you pay monthly for coverage.
- However, if your family’s situation changes during the year, the premium tax credit you qualify for also changes. If you forget to update your original estimates, you may need to pay back some or all of your credit on your tax return.
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