People who receive a premium tax credit (PTC) in advance must report it on their tax return to determine whether the amount of PTC they received was correct (a process called “reconciliation”).
The amount of PTC someone receives is based on their projected income for the year. If their actual income for the year ends up being higher or lower than their projected income, the amount of PTC they are eligible for will be adjusted and they will need to "reconcile" the difference.
If someone received too much PTC based on their income, they might have to pay some or all of it back. If they received too little, they can get an additional credit on their tax return.
Eligibility for subsidies in the Marketplace is determined in part by using specific percentages and thresholds that are indexed and change each enrollment year. In addition, people who received advance premium tax credits (APTC) in the prior enrollment year will need to complete a tax return for that year and…
Tips to Avoid Unnecessary APTC Repayment Updated for Tax Year 2023 This quick guide explains two of tricky premium tax credit questions in TaxSlayer, and outlines how to answer each one so that taxpayers aren’t accidentally charged an APTC repayment they do not owe.
This tool, Premium Tax Credit Tips and Tricks, explains Form 1095-A and how it’s used to reconcile the premium tax credit on Form 8962. It also shares a few tips and tricks to help resolve complex premium tax credit questions. Updated for Tax Year 2022 This resource was incorporated into…
In this Beyond the Basics webinar presented by the Center on Budget and Policy Priorities on October 12, 2021, Tara Straw, Director of Health Insurance and Marketplace Policy, brings together all of the policies covered in our webinar series by walking through the HealthCare.gov application step-by-step. ↓ View Presentation Slides…
In this Beyond the Basics webinar presented by the Center on Budget and Policy Priorities on September 16, 2021, Tara Straw, Director of Health Insurance and Marketplace Policy, provides an in-depth review of eligibility rules for premium tax credits—including how offers of employer-sponsored insurance can affect eligibility—as well as how…
The health reform law changed the way Medicaid and CHIP determine eligibility for most beneficiaries to align with how eligibility for premium tax credits is determined in the Marketplaces. All three coverage programs determine a household’s size and income using tax rules. The Center on Budget and Policy Priorities developed…
ACA Tax Training Webinar, Tax Year 2019 This webinar, presented on December 18, 2019, explains how to reconcile the premium tax credit, which provides significant financial assistance to low- and moderate-income families who purchased coverage in the marketplace. This is an advance ACA certification topic for VITA and TCE volunteers.…
ACA Tax Training Webinar Series, Tax Year 2018 As part of the ACA tax training webinar series for VITA/TCE volunteers presented on November 15, 2018, this webinar gives an overview of basic ACA certification topics for VITA and TCE volunteers, such as the requirement to maintain minimum essential coverage and…
ACA Tax Training Webinar Series, Tax Year 2018 As part of the ACA tax training webinar series for VITA/TCE volunteers presented on November 13, 2018, this webinar explains how to reconcile the premium tax credit, which provides significant financial assistance to low- and moderate-income families who purchased coverage in the…
For Tax Year 2015 Updated February 2016 Tax returns now include questions and forms related to the Affordable Care Act (ACA). All taxpayers need to report on their health insurance coverage, and some need to complete new tax forms or worksheets to claim an exemption from the coverage requirement, or calculate…
