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Essentially the IRS will require anyone that took an Advance Premium Tax Credit to file an additional form with their taxes in 2015.

One form, 1095-A, is what they call an information return which is like a W-2. Basically it will calculate what was given by the government in subsidy dollars to the individual’s household and then be mailed to that individual by January 31. Additionally, they will use another form, 8962, to calculate if the subsidy you received was equal to, lesser, or greater than what the actual amount should have been.

If you received too much money in advance subsidies, you will have a tax payment owed to the IRS. They will deduct this from any refund owed to you before issuing the refund. Or they will add it to any additional taxes owed to them. However, there is what is called a “repayment cap.” These caps are based on where your household falls in terms of the federal poverty guidelines.

What is yet to be known is how or will the IRS, or any other branch of the federal government, reconcile the secondary subsidy levels known as the “Cost Sharing Subsidy.” The “Cost Sharing Subsidy,” reduces your deductible, co-pays, and Out of Pocket Maximums to a lower amount based on your reported income. If you used your coverage through the year and had only a 500 deductible, and then after filing your taxes should have had a 5000 deductible, will you have to pay in additional moneys? That answer is still pending.

Here is a chart of the advance premium tax credit repayment caps based on where your household falls in the federal poverty level:

Household Income (in terms of Federal Poverty Line) Repayment Cap if Filing for Household of 1 Repayment Cap if Filing Multi-person Household
Between 100%-200% Federal Poverty Line $300 $600
Between 200% & 300% FPL $750 $1500
Between 300% & 400% FPL $1250 $2500
400% or more of FPL No Cap No Cap