About BeforeYouOwe and how the check works

BeforeYouOwe builds free checks for money rules that just changed, so people find out what they could owe before the bill arrives. It is an independent project based in the United Kingdom. It is not a government site, a tax firm or an insurance company, and it does not sell or recommend health plans.

Why this check exists

From the 2026 coverage year there is no longer a cap on how much advance premium tax credit you repay if your income turns out higher than you estimated, and the 400% income limit is back. A small change in income can now mean a large bill at tax time. Most people only find out when they file.

How the estimate is calculated

1. Your poverty-line percentage. Your expected income is divided by the 2025 HHS poverty guideline for your household size and state (48 states and DC, Alaska or Hawaii). The 2025 guidelines are the ones used for 2026 coverage.
2. Your expected contribution. The 2026 applicable percentage table from IRS Rev. Proc. 2025-25 gives the share of income you are expected to pay toward the benchmark plan, rising smoothly within each band (2.10% up to 9.96%).
3. Your benchmark plan cost. Worked back from the monthly subsidy you receive and the income you reported, because the Marketplace set your subsidy as the benchmark premium minus your expected contribution.
4. The subsidy you are allowed. Benchmark premium minus your contribution at your new income, for each month covered. Above 400% of the poverty line it is zero.
5. What you repay. Subsidy paid in advance minus subsidy allowed, with no cap for 2026.

What it assumes

The same subsidy every month, a plan that costs at least the subsidy, and no change in household during the year. Marriage, a new baby, moving state or starting employer coverage need a fuller calculation. Your actual figure is settled on IRS Form 8962 when you file.

Sources

• IRS Revenue Procedure 2025-25 (2026 applicable percentage table)
• HHS 2025 poverty guidelines, 90 FR 5917, 17 January 2025
• Public Law 119-21, section 71305 (end of the repayment cap)
• 26 U.S.C. §36B and 26 CFR §1.36B-3 (credit calculation)
• 45 CFR §155.330 (reporting changes to the Marketplace)

Figures last checked against these sources in November 2026. If you spot an error, email hello@beforeyouowe.com and we will correct it.