Why is Premium Tax Credit 0? Over 400% of FPL, but Inflation Reduction Act removed income phaseout and reduced costs to 8.5% of income. Without PTC, costs is about 30%.

[johnmichael352]

When inputing data, it is showing 0 premium tax credit, meaning repayment of full marketplace health insurance premium, over $20k.  Income was over 400% of federal poverty level, about 90k total, but with recent legislation, my understanding is incomes over that level would qualify through 2025 and costs would be limited to 8.5% of income.  In this case, roughly 8k.  I know under the original guidelines, the income would be too high, but with the ARP and Inflation Reduction Act I thought the PTC was still avaible at this income level.  What am I missing about how this PTC works?

[Vanessa A]

If your income is over 400% of poverty level, you are correct, the repayment is .0850 of your income.  When I walk through and enter an income of about 401% of poverty level, it does calculate my repayment limitation properly. So, the program is working properly,  So now we need to figure out what is happening on your return that is causing you to not see the correct repayment amount. 

Have you walked all the way through your questions?  Are you using desktop or the online version of TurboTax?  If you look at form 8962,  what do you see on line 2a as your MAGI?  

Are you married?  If so, are you filing jointly?  If you file separately you would not be eligible for the Premium Tax Credit, regardless of your income.

You can see form 8962 in TurboTax Desktop by selecting forms mode or by going to the print center in the online version.

[LenTurner1960]

I have the same issue. Form 8962 is calculating my annual contribution amount and showing the cap at 8.5% of Modified AGI. I come out in excess of 401% so my overall cost of insurance should be capped at 8.5% of Modified AGI. However the cap is currently not being calcuated on any of the forms. It shows I should be paying 13.1% of my mmodified AGI which is wrong. According to the tax law through 2025 I should be paying a maximum of 8.5%

[Vanessa A]

If your income is over 400% of the FPL for 2024 tax year, then there is no repayment limitation. 

If your entry on Form 8962, line 5, is 400 or more, there is no repayment limitation. You must repay...

@LenTurner1960