The Internal Revenue Service (IRS) encourages people to report a change in their circumstances to the Marketplace to avoid getting too much or too little advance payment of the premium tax credit. Getting too much means they may owe additional money or get a smaller refund when they file their taxes. Getting too little could mean missing out on premium assistance to reduce their monthly premiums.
The IRS explained that repayments of excess premium assistance may be limited to an amount between $300 and $2,500 depending on income and filing status, but if advance payment of the premium tax credit was made but their income for the year turns out to be too high to receive the premium tax credit, they will have to repay all of the advance payments with no limitation.
