How do premium tax credits work if my income changes mid-year?

Advance Premium Tax Credits (APTC) are based on your estimated annual income. If your income increases or decreases during the year, you must report it to the Marketplace immediately.

Reporting changes ensures your monthly subsidy is adjusted accurately. This helps you avoid having to pay money back to the IRS when you file your federal taxes or allows you to receive a larger premium discount if your income drops.