can someone explain to me why you have to owe back some or all of the Advanced Premium Tax Credit if you CANCEL your marketplace plan and you sign onto your employer’s health insurance plan partway through the year?

I know that signing up for the marketplace is based off of your annual income, but that's only because taxes are done yearly, since receiving APTC is related to taxes and all that. but they tell you to update your application throughout the year if there are any changes including job and income changes.

So if I got a 6-figure job partway through the year for example that included health insurance and I enrolled in my employer's health insurance, then subsequently became ineligible and then canceled my marketplace insurance, AND NOTIFIED the healthcare marketplace of all of these changes, then why would my taxes come around to tell me that I owe back backlogged APTC that I didn't use nor was eligible to receive?

APTC goes to the health insurance company you're enrolled in directly. It's not like I get the credit in the form of a check in the mail or direct to my banking account. If i don't have that insurance any more and I'm not paying premiums on that insurance (since I got new insurance) then where is the APTC going and why do I owe APTC on it? So I have to owe APTC on cancelled insurance AND premiums on employer insurance throughout the year???

submitted by /u/kh7190
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