Case Study 1: Claiming the PTC
Brandon is single, with no dependents. When he enrolled through the Marketplace, Brandon was approved for advance credit payments of the premium tax credit based on his projected household income. Brandon's Form 1095-A shows advance credit payments of $1,486. Brandon's actual modified AGI is 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. In addition, Brandon is not allowed a repayment limitation. Brandon must increase his tax liability by the amount of his advance credit payments. He will complete Form 8962 and enter $1,486 on the excess advance premium tax credit repayment line on his tax return.