Tax Law Changes

Premium Tax Credit

For 2026, cap is removed on additional income tax due for excess Advance Premium Tax Credit payments for tax years after 2025. This applies even if household income is less than 400% of the federal poverty line (FPL).

For tax years after 2025, taxpayers with household income of more than 400% of FPL are not eligible for the Premium Tax Credit.

Note: In general, individuals and families may be eligible for the Premium Tax Credit if their household income for the year is at least 100 percent but no more than 400 percent of the federal poverty line for their family size.

Details about these and other updates can be found in Publication 4012, Tab H, Other Taxes, Payments, and Refundable Credits.