ACA excess credits can be re-claimed by IRS - unlike "penalty" which is limited by holding refund only.

[easytax]

Saw this and found it was different from my original understanding --- IRS can do more than just withhold refund IF you have excess health premium credits --- versus just a penalty.

 

 

IRS isn’t limited in trying to collect excess advance health premium credits.

The agency’s full collection arsenal is available to collect overpayments,

including levies and liens against a taxpayer’s assets if the filer doesn’t pay up.

That’s even more reason to quickly tell the exchange of changes in family size, income

and other circumstances affecting the amount of the credit. If your income ends up

to be higher than you estimated, the smaller credit may cause you to owe tax.

The Service is far more restricted when collecting the tax for being uninsured.

The agency isn’t allowed to use its lien and levy powers against those without coverage,

so it can only offset tax refunds. Nor can it charge interest on the unpaid balance.