If you have received a notice from the IRS stating that you estimated your income level incorrectly last year and as such received an Advance Premium Tax Credit (subsidy) that was incorrect. The chances are very good that you won’t have to pay back the full amount. In fact, only those with income levels above 400% of FPL – Federal Poverty Level – will have to pay back the full amount. For the rest of us, the repayment amount is capped based on our income level.
Below is a chart that states the maximum amount you will have to pay back to the IRS regardless of how large of a subsidy that you took incorrectly. How much will this ‘subsidy forgiveness’ cost taxpayers? That number has yet to be determined.
| Income, based on federal poverty level
| Annual Household Income for an Individual
| Individual Payback of Obamacare Premium Assistance | Annual Household Income for a Family of Four
| Family Payback of Obamacare Premium Assistance |
| Less than 200%
| Under $22,980
| Capped at $300
| Under $47,100
| Capped at $600 |
| At or above 200% to 300%
| $22,980 – $34,470
| Capped at $750
| $47,100 – $70,650
| Capped at $1,500 |
| At or above 300% to 400%
| $34,470-$45,960 | Capped at $1,250 | $70,650 – $94,200
| Capped at $2,500 |
| Greater than 400%
| $45,961 and higher | Full amount received | $94,201 and higher | Full amount received |
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