Cap on Advance Tax Credit/subsidy that Individuals Must Pay Back: Has It Changed for 2015 or 2016?

Dec 15, 2015

  1. OldGeorge1950
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    cap on advance tax credit/subsidy that individuals must pay back: has it changed for 2015 or 2016?

    Is it still based on 100%, 200%, 300% or 400% of the federal poverty line? Are the payback amounts stil lthe same still the same?

    I can only find a 2013 table. Here are the caps of the amount that individuals must pay back:

    Under 200% of poverty line: $300
    200% to 300% of poverty line: $750
    300% to 400% over poverty line: $1250
    400% over poverty line: full amount

    Thanks! :)
     
  2. MBSC
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    Still the same for 2015 tax returns to be filed a few months from now. Too early to tell for 2016 returns to be filed over a year from now.
     
    MBSC, Dec 15, 2015
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  3. Yagents
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    I have double those dollar amounts listed (maybe for 2 or more / family)
     
    Yagents, Dec 15, 2015
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  4. Ann H
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    I started to say that it was not indexed. But then I thought that maybe it is indexed.

    From https://www.gpo.gov/fdsys/pkg/USCOD...leA-chap1-subchapA-partIV-subpartC-sec36B.htm

    (B) Limitation on increase
    (i) In general
    In the case of a taxpayer whose household income is less than 400 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subparagraph (A) shall in no event exceed the applicable dollar amount determined in accordance with the following table (one-half of such amount in the case of a taxpayer whose tax is determined under section 1(c) for the taxable year):

    If the household income (expressed as a percent of poverty line) is: The applicable dollar amount is:
    Less than 200% $600
    At least 200% but less than 300% $1,500
    At least 300% but less than 400% $2,500.

    (ii) Indexing of amount
    In the case of any calendar year beginning after 2014, each of the dollar amounts in the table contained under clause (i) shall be increased by an amount equal to—
    (I) such dollar amount, multiplied by
    (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting “calendar year 2013” for “calendar year 1992” in subparagraph (B) thereof.

    If the amount of any increase under clause (i) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.​

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    Here is the way that the IRS states it, which clearly shows the amounts for singles versus 1+. I still don't know if it's indexed yearly or not.


    Repayment Limitation Table
    Household Income Percentage of Federal Poverty Line Limitation Amount for Single Limitation Amount for all other filing statuses
    Less than 200% $300 $600
    At least 200%, but less than 300% $750 $1,500
    At least 300%, but less than 400% $1,250 $2,500
    400% or more No limit No limit

    Oops. That didn't copy/paste well. Go here - https://www.irs.gov/Affordable-Care...redit-and-Reconciling-Advance-Credit-Payments
     
    Ann H, Dec 16, 2015
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  5. MBSC
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    It is indexed annually but there is a $50 minimum change that was not met for 2015 tax returns. See Table 5 in IRS Form 8962 Instructions below.

    https://www.irs.gov/pub/irs-pdf/i8962.pdf
     
    Last edited: Dec 16, 2015
    MBSC, Dec 16, 2015
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