The Premium Tax Credit
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. To get this credit, you must meet certain requirements and file a tax return.
You are eligible for the premium tax credit if you meet all of the following requirements. You:
For more information about these eligibility requirements see Eligibility for the Premium Tax Credit.
When you enroll, the Marketplace will determine if you are eligible for advance payments of the premium tax credit, also called advance credit payments. Advance credit payments are amounts paid to your insurance company on your behalf to lower the out-of-pocket cost for your health insurance premiums.
|Premium Tax Credit Tool
Use our interactive premium tax credit tool to see if you qualify.
|Change in Circumstances|
If you benefit from advance payments of the premium tax credit, it is important to report life changes to the Marketplace as they happen throughout the year.
Certain changes to your household, income or family size may affect the amount of your premium tax credit. These changes can alter your tax refund, or cause you to owe tax. Reporting these changes promptly will help you get the proper type and amount of financial assistance. For more information, see the Changes in Circumstances section of our Claiming the Credit and Reconciling Advance Credit Payments page.
|Claiming and Reconciling the Credit|
|If you get the benefit of advance credit payments in any amount – or if you plan to claim the premium tax credit – you must file a federal income tax return and attach Form 8962, Premium Tax Credit, to your return. You claim the premium tax credit and reconcile the credit with the amount of your advance credit payments for the year on Form 8962. You must file a return even if you’re usually not required to do so. Failing to file your tax return will prevent you from receiving the benefit of advance credit payments in future years. For more information on filing a return to claim and reconcile the credit see Premium Tax Credit: Claiming the Credit and Reconciling Advance Credit Payments.
Filing electronically is the easiest way to file a complete and accurate tax return. Electronic filing options include free volunteer assistance, IRS Free File, commercial software and professional assistance.