Marketplace Credit: Benchmark and Enrollment Limit

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Marketplace enrollment premiums can limit a credit even when the benchmark calculation produces more.

Fictional 2025 case: a single, nondependent U.S. citizen lives in Ohio all year, has no dependents, and earns only $45,180 wages with no income adjustments. They are enrolled throughout January–December in one qualified Marketplace plan, with no other minimum-essential-coverage eligibility, reimbursement arrangement, shared policy or coverage changes. All premiums are paid during 2025.

Correct Form 1095-A records show identical monthly enrollment and benchmark premiums throughout the year: annual enrollment $6,000, applicable second-lowest-cost silver-plan benchmark $9,000, and advances $5,000.

Using 2025 Form 8962 instructions, household income is $45,180. Divide by the one-person poverty amount $15,060: 300%. The applicable figure is 0.0600. Annual contribution is $45,180×0.06=$2,710.80, rounded to $2,711.

Benchmark minus contribution is $6,289. The allowed credit is the smaller of that and $6,000 enrollment premiums: $6,000. Subtract $5,000 already advanced, leaving $1,000 net premium tax credit—not the final return refund or a further $6,000 payment.