Premium Tax Credit Changes for 2026 | HelloBooks From 2026 there is no cap on repaying excess advance premium tax credit. Which marketplace clients are exposed and how to keep estimates current.
Clients who buy marketplace coverage with advance credit payments used to have a ceiling on what they paid back if their income came in higher. For tax years beginning after 2025, that ceiling is removed.
Free Plan with invoices within 200 transactions, bills & quotes — no credit card.
Repayment cap on excess APTC
Removed from 2026
Applies: Tax year 2026 onwardFrom IRS.gov · checked October 10, 2026
OBBBA removed the limits on repayment of excess advance payments of the premium tax credit, for tax years beginning after December 31, 2025. A client whose income ends up higher than the estimate given to the marketplace repays the full excess on Form 8962.
Self-employed clients with uneven income, early retirees drawing down accounts, and anyone who sold property or exercised options mid-year. For these clients, a projection in the autumn and an update to the marketplace can save a large balance due in April.
For self-employed clients, current books are the basis for an accurate marketplace income update. Bank feeds and monthly categorisation mean you can give them a year-to-date profit figure at any point instead of guessing from last year’s return.
The plain-English summary for business owners
Individuals · health savings accounts
By client type · gig workers and creators
By client type · retirees and seniors
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
Free Plan with full access to the AI accountant — no credit card, no time limit.