topic ACA Refund below poverty threshold in Deductions & credits

ACA Refund below poverty threshold

ericwschofield — Mon, 09 Mar 2026 06:49:34 GMT

2021 took the year off to do a masters. Signed up for ACA but subsidy was $0 as I expected next to zero income for the year. Such low incomes are expected to file for Medicaid, but I do not qualify. So I just paid the full premium anticipating a significant refund at tax time

Got the 2021 1095-T which shows premium with no subsidy and an income at 72% of the poverty level. I enter the values in Turbo Tax and it makes the same mistake as ACA, saying $0 was the appropriate credit.

Anyone had the same issue?

Re: ACA Refund below poverty threshold

RaifH — Mon, 28 Mar 2022 20:19:04 GMT

If your income is below the poverty level, you may still claim the premium tax credit if you meet the following requirements:

No one can claim you as a dependent for the year.
You or an individual in your tax family enrolled in a qualified health plan through a Marketplace.
The Marketplace estimated at the time of enrollment that your household income would be at least 100% of the federal poverty line for your family size for 2021.
APTC was paid for the coverage of one or more months during 2021.
You otherwise qualify as an applicable taxpayer (except for the federal poverty line percentage).

If you did not take any advanced premium tax credit, you are not eligible to claim any on your tax return.

Re: ACA Refund below poverty threshold

AmeliesUncle — Tue, 29 Mar 2022 01:06:18 GMT

As was pointed out above, it isn't a mistake. While there are exceptions, the general rule is that your income must be OVER 100% of the Poverty Level.