ObamaCare repayment limits 2020/2021

How Repaying ObamaCare’s Premium Tax Credits Works

If your income changes, you may have to pay back Advanced Premium Tax Credit Payments up to the Advanced Tax Credit Repayment Limit based on your income. If you don’t claim enough money to qualify for tax credits, you won’t owe back anything.

TIP: The American Rescue plan Act expanded cost assistance under the Affordable Care Act and made some changes that impact tax credit repayment limits. The Act granted a repayment holiday for 2020, which could lower what you have to repay in tax credits for the 2020 plan year. It also offers subsidies over the 400% poverty level for 2021 – 2022. For 2021 – 2022, those making over 400% FPL can’t pay more than 8.5% of household income, thus in most cases going over 400% won’t result in owing back the full amount received in tax credits.”

TIP: This page covers Advanced Premium Tax Credit Repayment limits for 2018, 2019, and 2020 plans under the Affordable Care Act (needed for filing for taxes filed April 2019, 2020,  and 2021). This page has been updated for 2021. For verification, see the official IRS 8962 form instructions.

TIP: “Income” is household income calculated as MAGI. Once you know your household income, you can compare it to the Federal Poverty Level guidelines for the year you had coverage.

What Cost Assistance Must be Paid Back?

You don’t have to pay back Cost Sharing Reduction Subsidies or Medicaid, but you could end up owing Advanced Premium Tax Credits back up to the limit for your income level. If you want to avoid this, make sure to double-check your application and report changes to income throughout the year so your credits can be adjusted. For those who are unsure what their income will be, consider taking only part of the Credit upfront.

How Do you Calculate Repayment of Tax Credits?

You’ll calculate your repayment when you file the Premium Tax Credit Form 8962.

What Are the Advanced Tax Credit Repayment Limits?

Line 28. Repayment Limitation. The amount is limited to certain amounts helping to ensure you won’t owe more than you can afford if you received an excess of Advanced Premium Tax Credits. Please note that you’ll owe back all tax credits if you make over 400% and could owe back nothing if you make less than 100% of the poverty level.

TIP: The numbers below are the max amount you will have to repay, not the exact amount. In other words, repayment limits mean you can’t pay higher than the amount listed for your family size and % of the Federal Poverty Level, but may pay less. Ex. if you made 201% as a family of two you can’t owe back more than $1,600 f0r 2020 plans (your repayment is capped at $1,600). Amounts are subject to change each year, so always double-check this year’s repayment limits.

ObamaCare Tax Credit Repayment Thresholds For 2020 Plans (2021 Tax Season)

NOTE: The following Advanced Tax Credit Repayment limit table from form 8692 below is updated for 2020 coverage (accounted for on taxes filed in 2021).

NOTE: The actual amount owed back for 2020 – 2022 may be lower due to the American Rescue Plan Act.

Income % of FPL Filing Status:
Single
Filing Status:
All Other
Less than 200% FPL $325 $650
At least 200% FPL
but less than 300%
$800 $1,600
At least 300% FPL
but less than 400%
$1,325 $2,700
More than 400% FPL Full Amount Received Full Amount Received
If your year-end income exceeds 400% FPL, you will have to return the total amount of Advanced Premium Tax Credits you received. If you make too little to qualify for subsidies (less 100% FPL), then you should owe NOTHING (per the directions of form 8962 from which this table comes). That being said, if you know you are going to price out-of-cost assistance, make sure to update your Marketplace account. You might become eligible for a free or low-cost Medicaid plan if your state expanded Medicaid.

TIP: See federal poverty level for more details. Make sure to refer to the current 8962 form for calculations each year at tax time (you can always use last year’s numbers for a general estimate).

ObamaCare Tax Credit Repayment Thresholds For 2019 Plans (2020 Tax Season)

NOTE: The following Advanced Tax Credit Repayment limit table from form 8692 below is updated for 2019 coverage (accounted for on taxes filed in 2020).

NOTE: The actual amount owed back for 2020 – 2022 may be lower due to the American Rescue Plan Act.

Income % of FPL Filing Status:
Single
Filing Status:
All Other
Less than 200% FPL $300 $600
At least 200% FPL
but less than 300%
$800 $1,600
At least 300% FPL
but less than 400%
$1,325 $2,650
More than 400% FPL Full Amount Received Full Amount Received
If your year-end income exceeds 400% FPL, you will have to return the total amount of Advanced Premium Tax Credits you received. If you make too little to qualify for subsidies (less 100% FPL), then you should owe NOTHING (per the directions of form 8962 from which this table comes). That being said, if you know you are going to price out-of-cost assistance, make sure to update your Marketplace account. You might become eligible for a free or low-cost Medicaid plan if your state expanded Medicaid.

ObamaCare Tax Credit Repayment Thresholds For 2018 Plans (2019 Tax Season)

NOTE: The following Advanced Tax Credit Repayment limit table from form 8692 is updated for 2018 coverage (accounted for on taxes filed in 2019).

Income % of FPL Filing Status:
Single
Filing Status:
All Other
Less than 200% FPL $300 $600
At least 200% FPL
but less than 300%
$775 $1,550
At least 300% FPL
but less than 400%
$1,300 $2,600
More than 400% FPL Full Amount Received Full Amount Received
If your year-end income exceeds 400% FPL, you will have to return the total amount of Advanced Premium Tax Credits you received. If you make too little to qualify for subsidies (less 100% FPL), then you should owe NOTHING (per the directions of form 8962 from which this table comes). That being said, if you know you are going to price out-of-cost assistance, make sure to update your Marketplace account. You might become eligible for a free or low-cost Medicaid plan if your state expanded Medicaid.