APTC
Advance Premium Tax Credit — the income-based subsidy that reduces ACA marketplace premiums up-front (rather than at tax-filing time). Eligibility runs from 100%–400% of Federal Poverty Level (FPL); for plan years 2021-2025, pandemic-era law (ARPA, then the Inflation Reduction Act) removed the 400% FPL cliff and capped premiums at 8.5% of household income - that enhancement was scheduled to lapse after 2025, so check healthcare.gov for the current plan-year rules. Reconciled on Form 8962 — if your income ends up higher than projected, you owe back some of the credit at tax time.
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Related terms
Adjusted Cost Basis · Annuity · Backdoor Roth · Capital Gains Distribution · Capitalized Interest · Cost Basis
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