CliffSafe

New for 2026 taxes: no repayment cap

Will I Have to Pay Back My ACA Subsidy?

Estimate your 2026 premium tax credit reconciliation (Form 8962). If your income came in higher than you told the marketplace, you now repay the full difference.

Your 2026 numbers

From your Form 1095-A (monthly)

Estimated amount you owe back

$13,200

Advance credit received
$13,200
Credit you qualify for
$0
Income vs. poverty line
416% FPL

You're $3,400 over the 400% FPL cliff ($84,600).

At exactly the cliff you would owe $626 instead of $13,200, a difference of $12,574.

You may still be able to fix this. Contributions for tax year 2026 to a traditional IRA (up to $17,200 for your household, if deductible) and an HSA (up to $9,750, if you had an HSA-eligible plan) can be made until April 15, 2027, and they lower your 2026 MAGI.

How reconciliation works

During the year, the marketplace paid part of your premium based on the income you estimated. At tax time, the IRS recalculates the credit using your actual income. If you received more than you qualified for, the difference is added to your tax bill. If you received less, it is added to your refund.

Why 2026 is different

Two things changed at once: the enhanced subsidies expired, bringing back the 400% FPL cliff, and the repayment cap was repealed. If your 2026 income crossed the cliff, you owe back every dollar of advance credit you received.

Planning for next year? Use the 2027 subsidy cliff calculator before you enroll.

Frequently asked questions

›Is there still a cap on paying back the premium tax credit?

No. The One Big Beautiful Bill Act (§71305) repealed the repayment limits for tax years beginning after December 31, 2025. For your 2026 taxes you must repay the full excess advance premium tax credit.

›What were the old repayment caps?

For tax year 2025, repayment was capped at $375 (single) or $750 (other filers) under 200% FPL, $975 or $1,950 from 200% to 300% FPL, and $1,625 or $3,250 from 300% to 400% FPL. Above 400% FPL there was no cap.

›Can I still lower my 2026 income after the year ends?

Yes, partly. Traditional IRA and HSA contributions for tax year 2026 can be made until the April 15, 2027 filing deadline, and both reduce MAGI if deductible.

›Where do I find the numbers for this calculator?

Your marketplace sends Form 1095-A in early 2027. Column A is your plan premium, column B is the benchmark (second-lowest-cost silver plan) premium, and column C is the advance credit paid to your insurer each month.