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Statement 8
“My premium tax credit is based on what I earned last year.”
True or false?
Correct!
Not quite.
The credit is based on your estimate of household income for the year the coverage is in force. For a 2027 plan, that means what you expect to earn in 2027. The estimate is checked against your tax return afterward. If you earned more than you estimated, you may have to repay credit. If you earned less, you may get more back. Update the Marketplace when your income changes during the year.