Premium Tax Credit Cap for Dual Insurance mistake

[Tie Flys]

My income was going to increase in 2022 beyond what would normally make me eligible for CHIP/Medicaid so I went to the Marketplace for health insurance.  Without my knowledge, I was automatically renewed in CHIP/Medicaid for 2022 due to the American Rescue Plan( in spite of my higher income).  I received no notification that I was renewed for 2022 until I received a new automatic renewal notice later in August of 2022 for renewal in 2023. It was then I found out I had been dual insured during all of 2022 with CHIP/Medicaid as well. I was also enrolled in the Marketplace for all of 2022.  The results were that I qualified for Marketplace insurance with a substantial Tax Premium Credit along with notices in the Results page that I didn't qualify for CHIP/Medicaid.  I went almost the entire year with dual insurance without knowing it and now I'm told by the Marketplace that I have to pay back all of the Tax Premium Credit since I had dual coverage.  There has to be a precedence for this.  It was an honest mistake. I never would have paid for Marketplace insurance had I know I was already getting it for free.  What recourse do I have?  Will the Premium Tax Credit repayment Cap protect me?  Thanks for any advice!

[Bsch4477]

Repayment Limits for Advanced Premium Tax Credits, 2022 Tax year

Table with 3 columns and 4 rows. Currently displaying rows 1 to 4.

Income (% of Federal Poverty Level)	Maximum repayment amount for a single taxpayer	Maximum repayment amount for other taxpayers
Less than 200% FPL	$325	$650
200% - less than 300% FPL	$825	$1,650
300% FPL - less than 400% FPL	$1,400	$2,800
400% and above	No limit; repay entire amount of excess tax credit	No limit; repay entire amount of excess tax credit

[Tie Flys]

This cap is based on income.  Will it still apply if I had dual health insurance?

[joehbenitez9]

Did you ever figure this out because I'm dealing with the same thing

[MarilynG1]

The IRS has placed limits on the amount of the Premium Tax Credit that must be repaid, according to your income.  Whether you had another source of health insurance is not part of the calculation.

TurboTax automatically applies the limit for you on Form 8962, according to the income reported on your return. 

When you View/Print your return, you can see the calculations on Form 8962. If your repayment amount is more than your tax refund, you can make payment arrangements with the IRS. 

Here's detailed info from the IRS on How is the Premium Tax Credit Calculated. 

@joehbenitez9