Las Cruces, NM asked in Health Care Law, Immigration Law, Insurance Bad Faith and Tax Law for New Mexico

Q: Marketplace health insurance plans for students on an f1 visa and their eligibility for an advance premium tax credits.

Hi, I wanted to ask if f1 students are eligible for an advance premium tax credits (APTC) while purchasing health insurance from marketplace. I have been enrolled in such a plan for a year now and have now been made aware that I am ineligible for APTC. I assume I have to payback the tax credits I have used while I file my taxes for the year 2024, is this correct? Will this mishap effect my immigration process when or if I apply for a permanent residence in the future? Thankyou.

1 Lawyer Answer
James L. Arrasmith
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Answered

A: Unfortunately, F-1 visa students are generally not eligible for Advance Premium Tax Credits (APTC) through the Health Insurance Marketplace, as these credits are limited to U.S. citizens and specific categories of lawfully present immigrants.

Since you received APTC while being ineligible, you will likely need to repay these credits when filing your 2024 taxes. The amount you'll need to repay depends on the total APTC you received during the coverage year. To address this situation promptly, you may want to contact the Marketplace to update your application and consider switching to a plan without APTC for the remainder of the year.

Regarding your immigration concerns, while receiving APTC incorrectly isn't ideal, it's considered an administrative error rather than immigration fraud if you weren't aware of your ineligibility. However, it would be wise to document that you're taking steps to correct the situation once you became aware of it. You might consider consulting with an immigration attorney to understand any potential implications and gather proper documentation of your efforts to resolve this matter. Remember to keep records of all communications with the Marketplace and any steps you take to address this situation.

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