Recovering Erroneous Credits from Outlaws and Unlawful Persons Act of 2016 or the RECOUP Act of 2016
This bill amends the Internal Revenue Code to provide for the full recapture of advance payments of refundable tax credits for health coverage under the Patient Protection and Affordable Care Act, if the payments were made to individuals who are not lawfully present in the United States or are incarcerated. The bill also specifies that the premiums of certain incarcerated individuals for whom a taxpayer is allowed a deduction for a personal exemption (including the taxpayer, the taxpayer's spouse, or dependents) must be excluded from calculations of premium assistance credit amounts.