Premium tax credit - health insurance

Forum|Forum|1 year ago
February 4, 2025
1 reply
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Hi,

Me and my husband had an insurance coverage through Marketplace while we lived in South Carolina. We reported our true income and we received a tax credit. We moved to Florida in May and we cancelled our insurance. Our income changed (increased) and now when we are filing with IRS, we owe over $600 for tax credit because our yearly income was higher than reported. But during those 5 months in South Carolina, our income was the same as we reported and after that we did cancel the insurance. Is there anything we can do?

ItsDeductible Online

MAK70

Unfortunately, the Premium Tax Credit is calculated on the annual income.

There is a limited exception "The amount of your excess APTC that increases your tax liability may be limited if your household income is less than 400 percent of the applicable federal poverty line, but you will have to repay all of the excess APTC if your household income is 400 percent or more of the applicable federal poverty line." See Repaying excess advance credit payments for tax years other than 2020.