Your tax return may not be complete. We are waiting for the IRS to give us an update on the Advance Premium Tax Credit relief provided for in the American Rescue Plan.
The Plan relieves eligible taxpayers of having to pay back any excess advance premium tax credit they took. If you used any credit to lower your monthly health insurance payment when you applied for coverage in the Health Insurance Marketplace®, you might not have to pay it back under the new law.
Under the ACA, people with incomes between 100 percent and 400 percent of the federal poverty level (from $12,760 to $51,040 for one person or $26,200 to $104,800 for a family of four) were eligible for premium tax credits to reduce their premiums for marketplace coverage.
But under the changes passed in the new law, how much people owe is reduced at every income level and capped at 8.5 percent overall.
