Premium tax credits are available to u s. The credit implemented under the affordable care act aca is designed to help eligible families or individuals with low to moderate income pay for health insurance.
Premium tax credits reduce your premium for most marketplace policies.
Insurance marketplace tax credits. The amount of the tax credit you may receive depends on your income and the cost of marketplace health plans in your area. If you purchased coverage through the federally facilitated marketplace and you set up a healthcare gov account you can get a copy of form 1095 a health insurance marketplace statement online from your account. If you were enrolled in a marketplace plan without premium tax credits for only part of 2020 or other family members had different coverage visit the relevant pages below.
Premium tax credits are only available if you are enrolled in a plan through the federal insurance marketplace or a state health insurance marketplace plan excluding catastrophic tier coverage. See below for more information regarding the effect of failing to reconcile advance payments of the premium tax credit. States do not vary in the number of tax credits that they offer.
Visit your marketplace s website to find out the steps you need to follow to get a copy of your form 1095 a online. Your tax credit is based on the income estimate and household information you put on your marketplace application. The premium tax credit also known as ptc is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the health insurance marketplace.
Get your form 1095 a health insurance marketplace statement. Advanced premium tax credits and other options. A tax credit can be paid in advance to your insurer through the marketplace.
Citizens and lawfully present immigrants who purchase coverage in the marketplace and who have income between 100 and 400 of the federal poverty level. Find it in your healthcare gov account. Premium tax credits are also available to lawfully residing immigrants with incomes below 100 percent of the poverty line who are not eligible for.
The size of your premium tax credit is based on a sliding scale. Any difference will affect your refund or tax owed. A tax credit you can use to lower your monthly insurance payment called your premium when you enroll in a plan through the health insurance marketplace.
Use form 8962 to reconcile your premium tax credit compare the amount you used in 2020 to lower your monthly insurance payment with the actual premium tax credit you qualify for based on your final 2020 income. If your state expanded medicaid you will be eligible for medicaid instead of tax credits below 133 or 138 adjusted fpl. The premium tax credit is a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the health insurance marketplace also known as the exchange.
To get this credit you must meet certain requirements and file a tax return with form 8962 premium tax credit. See a step by step guide to reconciling your premium tax credit. To qualify for tax credits you must make between 100 400 of the poverty level fpl.