One Big Beautiful Bill (OB3) Premium Tax Credit

These provisions have different effective dates, so it can get a little complicated.  This is important for all taxpayers on Healthcare Marketplace, AKA Obamacare.

Effective for 2026, advance payments of PTC that are required to be paid back are no longer limited by the applicable dollar amounts.  This means that there is no longer a limit on advance premiums you will have to repay.  This is reconciled on your tax return, based on the number of people in the household and your income.  If your income is in the range where you may have to repay part of your premiums, then you will really need to pay attention and make adjustments before 2026 comes around.

This means that unsuspecting taxpayers could have to repay $10,000 -15,000 in healthcare premiums when they file their 2026 tax return.  This can be devastating for taxpayers, so please contact us to discuss if you believe this may apply to you.

Effective for 2027, certain aliens lawfully present in the US must be “eligible aliens” in order to qualify for the credit.  The PTC is not allowed during periods of Medicaid ineligibility due to alien status.

Effective for 2028, State healthcare Exchanges must verify eligibility for Marketplace Healthcare coverage.