Repayment Calculator

How ACA Subsidy Repayment Works

When you enroll in a Health Insurance Marketplace plan, you estimate your income for the coming year. Based on that estimate, you can receive advance premium tax credits (APTC) that lower your monthly premiums. But your actual income may differ from your estimate.

When You File Your Taxes

At tax time, you reconcile on IRS Form 8962. You compare the advance credits you received against the actual premium tax credit you qualify for based on your real income. Three outcomes are possible:

• You received too much. Your actual income was higher than estimated. You owe back the excess. For tax year 2026 and later that means all of it; for 2025 and earlier, IRS repayment caps applied if you were under 400% FPL.
• You received too little. Your actual income was lower than estimated. You get an additional tax credit (larger refund).
• It's roughly even. Your estimate was close. Little to no adjustment needed.

IRS Repayment Caps

For tax year 2026 and later, there are no repayment caps. The One Big Beautiful Bill Act removed them, so any excess advance credit must be repaid in full, at every income level. And because the subsidy cliff is back, a household whose final income lands above 400% of the Federal Poverty Level qualifies for no credit at all and owes back everything it received in advance.

For tax years 2025 and earlier, the IRS limited repayment for households under 400% of the Federal Poverty Level, with the limit depending on filing status and income bracket. Above 400% FPL there was no cap.

What You Need

• Form 1095-A from your marketplace (mailed by January 31). Column C shows your monthly APTC.
• Your actual annual income (Modified Adjusted Gross Income).
• The income you estimated when you enrolled.