Sam, you have identified a flaw with the Affordable Care Act - it requires you to know the future.
For this reason, some taxpayers tell the Marketplace that they are refusing the PTC so that they won't be surprised at the end of the year by paying it all back, if things improve income-wise. Other taxpayers over-estimate their income at the beginning of the year in order to reduce the amount of PTC they get per month.
Let's say that you tell the Marketplace at the beginning of the year that you don't want any PTC. Then you reach the end of the year, and you show some income (but not over 400% of the federal poverty level). You get the 1095-A, and on your tax return, you are given the PTC as a credit on your return - which means that you eventually will be reimbursed for some of the premiums anyway, if you qualify.
So it's a question of when do you want the PTC, during the year or at the end of the year? Yes, during the year is nicer, but then you have this reading the future problem.
And if you end up making over 400% of the federal poverty line for your family size, you won't get any PTC anyway.
In your case, Sam, what happened is that the federal government loaned you the PTC, and when it found that you had made a lot of money, it called the loan.
P.S. when you have significant changes that affect your return, you need to call the Marketplace during the year to tall them, so that they can adjust the PTC. This at least limits the amount they pay for you (and which you might have to repay).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
