Yes. For the 2025 tax year, taxpayers with household income above 400% of the federal poverty line (FPL) may still be eligible for the Premium Tax Credit (PTC).
Under current law, the 400% FPL limitation does not apply for 2025, and eligibility is determined based on whether the cost of benchmark Marketplace coverage exceeds a required percentage of your household income.
Eligibility Requirements for Income Over 400% of Poverty Line
You may qualify for the PTC if you meet all of the following requirements:
- No one can claim you as a dependent for the tax year
- You (or a member of your tax family) are enrolled in a qualified health plan through a Health Insurance Marketplace
- You are an applicable taxpayer, which generally requires:
- Household income of at least 100% of the federal poverty line (with limited exceptions)
- Filing status is not Married Filing Separately, unless an exception applies (e.g., domestic abuse or spousal abandonment)
- You are not eligible for other minimum essential coverage (such as affordable employer-sponsored coverage, Medicare, or Medicaid)
- You meet all other PTC requirements.
Key Rule for Higher-Income Taxpayers
- There is no upper income limit (no 400% FPL cap) for 2025
- The PTC is based on an affordability standard:
- If the cost of the second lowest cost silver plan (SLCSP) exceeds the required contribution percentage of your household income, you may qualify for a credit
- As income increases, your expected contribution increases, which may reduce or eliminate the credit.
Important Clarification (Prior Law vs Current Law)
- The prior rule limiting eligibility to 400% of the FPL does not apply for 2025
- Eligibility above 400% FPL is not limited to special exceptions and applies generally if affordability criteria are met.
Additional Notes
- If your household income is below 100% of the FPL, you may still qualify in limited cases (for example, certain lawfully present individuals or based on Marketplace income estimates)
- If you received Advance Premium Tax Credit (APTC), you must reconcile it on Form 8962
- Filing a joint return is generally required if married, unless an exception applies
Source:
Publication 974 (Premium Tax Credit)
Form 8962 Instructions (2025)
Disclaimer: Always verify eligibility and requirements with the official IRS forms and instructions for the current tax year. For complex situations, consult a tax professional or attorney.