With the Advanced Premium Tax Credit, you only would have to make the adjustment if you had to pay back some of the advance and then deducted it so you do not have to report. The MLR rebate is a rebate of part of the insurance premiums (a purchase price adjustment). If you did not deduct the premium payments on Form 1040, the rebate is not taxable whether received as a cash payment or applied as a reduction in the amount of premiums due. @zellgrotto
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