Health Insurance Marketplace Income Credit

[malerimm]

I had a Marketplace plan for the first 3 months of 2020, and received premium credits based on my income that went toward the monthly premium. I then got a new job in April and got on my employer's HDHP plan, and cancelled the marketplace plan. Why do I now owe ALL of the premium credits back, if my income at the time(January-April) justified the amount of credit I was receiving? The IRS is looking at how much credit I received versus my income for the whole year, but I only received the credits for 3 months while my income WAS lower. Can anyone help?

[BillM223]

Unfortunately, the recapture of the Premium Tax Credit is based on your annual income, not the income month by month.

This means that many taxpayers who start the year off with little or no income, get the Marketplace insurance and the PTC, end up owing all the PTC back when they get a job halfway through the year which makes them ineligible for the PTC.

From the emphasis on months in the columns, it would not seem that way, but the instructions clearly base the payback of the PTC on your annual income.