What is the 2017 Process for Reconciling APTC?

• By January 31, the Marketplaces provide Form 1095-A (Health Insurance Marketplace Statement) to the tax filer to assist with computing the premium tax credit and reconciling APTC made on behalf of the tax filer and his or her family. Reconciliation means comparing two figures:
  • The amount of the premium tax credit paid in advance based on estimated income and other projected eligibility information; and
  • The final premium tax credit the tax filer is eligible for based on actual income and other eligibility information for the year for which APTC was paid on his or her behalf.

• The tax filer must use the information on Form 1095-A to complete Form 8962 (Premium Tax Credit) and file it with his or her federal tax return.
  • If the amount of the allowed premium tax credit is more than the applied APTC (i.e., a net premium tax credit), the tax filer either gets a larger refund or reduces his or her tax liability by the amount of the net premium tax credit
  • If the tax filer’s applied APTC is more than the allowed premium tax credit, this means excess APTC was paid on the tax filer’s behalf. The tax filer must enter the excess APTC on his or her return and repay all or a portion of it when filing the tax return. (The repayment amount may be limited for tax filers with actual annual household incomes below 400% of the FPL for the tax filer’s family size.) Excess APTC will either decrease his or her refund or increase his or her tax liability by the repayment amount.