APTC Repayment Question

Forum|Forum|10 months ago
August 20, 2025
1 reply
11 views

I have a client who was covered by a high quality, affordable employer health coverage in 2024. It covered well beyond minimum essential standards and the cost was fully paid by the employer. She thought she might lose her job and proactively signed up for coverage through the marketplace, receiving APTC while still covered from her employer (she never lost her job).

Now I am trying to do her 2024 return. Common sense (I know, don't say that when it comes to taxes) tells me she should have to pay back all the APTC. Yet, I can't find anywhere to check a box to say "hey, this person was ineligible for APTC in its entirety." So the computer is not only allow a portion of it, but is also capping the repayment.

Am I missing something right in front of my face or can this possibly be correct? If so, it seems to be a way to legally scam the system.

ProSeries Professional

T

TaxGuyBill

Level 15

As far as I've seen, the repayment limitation still applies.

You generally enter 0.01 for the SLCSP to disqualify the credit, but if the repayment is already being limited, that really won't change anything.

As far as legally scam the system, when applying for heath insurance and the Advance credit, the taxpayer certifies that she is not eligible for other insurance. Intentionally providing false information on the healthcare application is subject to a penalty of up to $250,000.

As a side note, the recent tax act has eliminated the repayment limitation starting for 2026.

IRonMaN

Level 15

"As far as legally scam the system, when applying for heath insurance and the Advance credit, the taxpayer certifies that he is not eligible for other insurance. Intentionally providing false information on the healthcare application is subject to a penalty of up to $250,000."

That's such a professional approach to saying - "lock her up" 😀

Slava Ukraini!

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