What are the income limits for premium tax credits and cost-sharing reductions under the ACA in 2024?
Executive summary
For 2024 coverage, premium tax credit (PTC) eligibility generally begins at 100% of the federal poverty level (FPL) and—because Congress extended temporary enhancements for 2021–2025—taxpayers with incomes above 400% FPL could still receive a PTC for tax years 2024 and 2025 (IRS and IRS Publication 974) [1] [2]. Cost‑sharing reductions (CSRs) remain available to enrollees who are eligible for the PTC and buy a Silver plan with household income up to 250% of FPL; more generous CSR levels apply at lower FPL bands (HealthCare.gov, CRS, KFF) [3] [4] [5].
1. Who can get the premium tax credit in 2024: the baseline rule
Under longstanding ACA rules, to qualify for the premium tax credit you must have household income measured as modified adjusted gross income (MAGI) at or above 100% of the FPL and meet other criteria (filing status, not eligible for affordable employer coverage, etc.)—HealthCare.gov and IRS guidance explain MAGI and household composition used to assess eligibility [6] [2]. The IRS and HealthCare.gov instruct applicants to base Marketplace subsidy calculations on projected annual MAGI for the coverage year [6] [7].
2. The wrinkle: 400% FPL cap was temporarily changed for 2021–2025
Historically the PTC phased out around 400% of FPL, but legislative and administrative actions from 2021 through 2025 expanded and enhanced eligibility. The IRS and other federal guidance say that for tax years 2024 and 2025, taxpayers with household income exceeding 400% of FPL may still be allowed a PTC because of those temporary enhancements (IRS Publication 974; IRS Q&A updates) [1] [2]. Independent analysts and policy briefs document that the enhanced credits markedly increased eligibility and enrollment (CBPP, Commonwealth Fund summaries) [8] [9].
3. How much you’ll pay — the “applicable percentage” and benchmark formula
The credit equals the difference between the benchmark plan premium (second‑lowest‑cost Silver) and a capped household contribution calculated from an “applicable percentage” of income. The IRS issues the applicable-percentage table used to compute the capped contribution and released indexing adjustments applying to 2024 (Rev. Proc. / IRS table) [10] [11]. Independent explainers summarize that family contributions rise with income and are capped at a maximum percentage (historically up to 8.5% of income, with enhancements affecting upper incomes) [12] [13].
4. Cost‑sharing reductions: who gets lower deductibles and OOP limits
CSRs are a separate subsidy that only applies if you enroll in a Silver Marketplace plan. Households eligible for the PTC with MAGI up to 250% of FPL are eligible for CSRs; the CSR benefit is more generous at lower income bands (100–150% FPL get the largest reduction, 150–200% an intermediate reduction, 200–250% a smaller one) (CRS, HealthCare.gov, KFF) [4] [3] [5]. CRS adjustments increase the actuarial value of a Silver plan (making plans effectively 73%, 87% or 94% AV depending on income band) and lower deductibles and out‑of‑pocket limits [5] [14].
5. Dollar examples and how FPL maps to income in practice
Many sources translate the FPL bands into dollar examples for 2024 coverage: for coverage effective in 2024, 250% of FPL equaled about $36,450 for a single person and $75,000 for a family of four—meaning CSRs would apply up to those approximate incomes (HealthInsurance.org, HealthCare.gov, ValuePenguin) [15] [3] [16]. Note: published FPL tables are updated annually and Alaska/Hawaii have higher thresholds, and marketplace calculations use the poverty guideline year specified for the coverage year [4] [17].
6. Practical caveats, reconciliation and policy context
If you get advance payments of the PTC during the year you must reconcile them on your tax return (Form 8962) with actual MAGI for the tax year; HealthCare.gov and IRS guidance stress reconciling to avoid repayment surprises [7] [18]. Policy context matters: analyses from CBPP, KFF and others show the enhanced credits dramatically expanded eligibility and lowered premiums in 2024, but those enhancements were explicitly temporary through 2025 and their extension or expiration affects who qualifies above 400% FPL [8] [19] [13].
7. What reporting does not say or uncertainties to watch
Available sources do not give a single, static dollar table for every household size and state in this packet; instead they point to the FPL tables and annual IRS applicable‑percentage tables that the Marketplace uses [17] [10]. Also, several reports stress that state Medicaid expansion decisions, special programs (state CSRs) and future legislation can change who is eligible and how generous subsidies are [20] [13].
If you want, I can: (a) pull the 2024 HHS poverty guidelines and map exact dollar cutoffs for household sizes 1–5, or (b) walk through a worked example for a household of your size and income using the 2024 tables cited above (using the sources provided).