Do I need to pay back all the amount of the Premium Tax Credit?

[nagoz1105]

Looks like you have to pay back some of your health insurance discount - please help

[xmasbaby0]

We cannot see any of your information.  

If you had health insurance from the marketplace, when you applied for the insurance, you gave healthcare.gov an estimate of how much income you would receive in 2023.  They used that amount to calculate how much of the insurance premium would be covered by the tax credit and how much would be your amount to pay.   So...you had some monthly amounts to pay, and the rest of the cost of having that insurance was paid by the government program.

If you ended up making a higher income than you told them you would receive, they re-calculate how much should have been paid by the program and how much should have been paid by you.   And if your own share of the cost should have been more, they get it back on your income tax return.   

[MonikaK1]

When you sign up for Marketplace insurance, you have the option to get assistance with the premium if you qualify based on your stated income. This assistance is treated as an advance on the Premium Tax Credit that you report on your tax return. 

You may use some or all of this credit in advance to lower your monthly premium costs, leaving money in your pocket. If you use more of your premium tax credit than your final taxable income allows, you'll need to repay the difference when filing your Form 1040 at tax time. As @xmasbaby0 stated, your premium assistance is recalculated if you ended up earning more income than you reported you expected to receive when you signed up for the insurance.

TurboTax will calculate the amount of premium assistance you owe and it will appear on Form 8962. The amount to be paid back is then shown on Schedule 2, Line 2, and included together with any alternative minimum tax on Form 1040, Line 17.

See this TurboTax tips article for more information about the Premium Tax Credit and Form 8962. 

@nagoz1105