When eligible individuals signed up for coverage at the Health Insurance Marketplaces (Marketplace), they chose to either have advance payments of the premium tax credit (APTC) made directly to their insurance provider to reduce their premiums throughout the year, get their assistance at tax time as a premium tax credit (PTC), or some combination of the two.
We project that about 4.8 million taxpayers need to file a return to claim PTC or reconcile APTC.
- Approximately 3.2 million taxpayers have filed Form 8962, Premium Tax Credit, 3 million of whom reported APTC. These taxpayers reported a total of approximately $10 billion in APTC of the approximately $15.5 billion the Marketplaces paid out in 2014.
- About 2.7 million taxpayers claimed approximately $9 billion in PTC, reporting an average credit of $3,400. About 40 percent claimed less than $2,000, 40 percent claimed $2,000 to $5,000, and 20 percent claimed $5,000 or more.
- Among taxpayers who claimed PTC or reconciled APTC, approximately 1.3 million, or about 40 percent, claimed a net PTC (meaning PTC exceeded the APTC paid during the year). The average additional amount received was about $600. An estimated 65 percent claimed net PTC of less than $500 and 80 percent claimed less than $1,000.
- By contrast, approximately 1.6 million, or 50 percent, of taxpayers who claimed PTC or reported APTC reported excess APTC (meaning APTC paid during the year exceeded PTC). The average amount repaid was about $800, for a total of $1.3 billion in excess APTC reported as repaid. An estimated 50 percent owe a repayment of less than $500 and 75 percent owe less than $1,000. About 65 percent of taxpayers with excess APTC still reported a refund.