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 AssistanceAnnual 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-$45,960Capped at $1,250$70,650 – $94,200

 

Capped at $2,500
Greater than 400%

 

$45,961 and higherFull amount received$94,201 and higherFull amount received

 

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