Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Affordable Care Act Workout

Claiming the Premium Tax Credit

Advanced Payments of the Premium Tax Credit (continued)

For taxpayers with household income below 400 percent of the FPL, the amount of tax liability due to excess advance credit payments is limited as provided in the repayment limitation table.

If no advance credit payments were made, taxpayers may claim the full amount of the premium tax credit on their 2014 tax return in 2015. This will either increase their refund or lower the balance due.

For taxpayers who use the Married Filing Separately filing status, the repayment limitation applies to the spouses separately based on the household income reported on each return.

Repayment Limitation Table

Household Income Percentage of Federal Poverty Line Limitation Amount for Single, Married Filing Separately, and HOH taxpayers Limitation Amount for all other filing statuses

Less than 200%

$300

$600

At least 200%, but less than 300%

$750

$1,500

At least 300%, but less than 400%

$1,250

$2,500

400% or more

No limit

No limit

 
Example

Brandon Talbot is single, has no dependents and lives in Alabama. When he enrolled through the Marketplace, Brandon was approved for advance credit payments of the premium tax credit based on his projected 2014 household income of $39,095. The applicable figure for his household income is .095. Brandon enrolled in a qualified health plan. The premium for the applicable SLCSP is $5,200. Brandon's Form 1095-A shows advance credit payments of $1,486. Brandon's actual modified AGI for 2014 was $46,000, which is more than the FPL limit shown in Publication 4012, ACA tab (more than 400% of the FPL for a family of one). Since Brandon's household income is above 400% of the FPL, he may not claim any premium tax credit, and must increase his tax liability by the amount of his advance credit payments. Brandon will complete Form 8962 and enter $1,486 on the excess advance premium tax credit repayment line on his tax return.

Form 8962
Form 1095-A
Form 1095-A

Form 8962

Form 1095-A

4012 ACA Tab chart