How does Line 46 get filled in ?
When you purchase marketplace health insurance you are expected to pay part of the cost. You are given a tax credit to cover purchasing the second lowest cost silver health plan available in your area.
That credit is called the Advance Premium Tax Credit or APTC. Your APTC is calculated based on your estimated annual household income, household size and where you live. If your income or family size changes, this may impact the APTC you receive.
For example, a household of two in the lower 48 states is expected to pay 3.28% of their income when their 2021 income is $40,000. If they increase their income to $50,000, they are expected to pay 5.60% of their income.
Line 46 is the excess APTC that has to be paid back. Line 46 is the difference between the APTC tax credit given at the beginning of the year and the APTC based on the actual income for the year. That is the excess APTC amount that must be paid back.
APTC payback was suspended for 2020 due to COVID.