Yes. You can deduct your health insurance premiums and the repayment amount you paid. The IRS states, any repayment of the Advance Premium Tax Credit is considered to be a premium payment in the same tax year.

What is excess advanced premium tax credit repayment?

A taxpayer’s excess APTC is the amount by which the taxpayer’s advance payments of the Premium Tax Credit (APTC) exceed their Premium Tax Credit (PTC).

How do I know if I have to pay back premium tax credit?

If at the end of the year you’ve taken more premium tax credit in advance than you’re due based on your final income, you’ll have to pay back the excess when you file your federal tax return. If you’ve taken less than you qualify for, you’ll get the difference back.

Do I have to pay back my Obama care subsidy?

For 2020, excess subsidies do not have to be repaid. And for 2021 and 2022 only, the ARP allows people with income above 400% of the poverty level to qualify for premium subsidies.

Do you have to pay back excess advance payments?

Excess Advance Payments You must pay the excess amount back as an additional tax if your advance payments are more than your Premium Tax Credit, but the amount might be limited. Your repayment is based on your household income above a certain threshold that correlates with the percentage of the federal poverty line your family falls within.

Where does the advance payment appear on the tax return?

The amount of advance payments appears on line 25. You must pay the excess amount back as an additional tax if your advance payments are more than your Premium Tax Credit, but the amount might be limited.

When do advance payments of the premium tax credit go into effect?

In April 2021, the IRS announced that, thanks to the American Rescue Plan Act, taxpayers are not required to “increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) for tax year 2020.”

What’s the limit for the excess advance credit?

For tax years other than 2020, the amount of your excess advance credit payments that increases your tax liability may be limited if your household income is less than 400 percent of the applicable federal poverty line.