Topic no. 612, The premium tax credit

Taxpayers who purchase health insurance through a Health Insurance Marketplace for themselves or others in their tax family (see the Instructions for Form 8962) may be eligible for the premium tax credit. This tax credit helps make purchasing health insurance coverage more affordable for people with low to moderate incomes. The premium tax credit is refundable, so even if you have little or no income tax liability you still may benefit. Eligible taxpayers may choose to have the Health Insurance Marketplace make advance payments of the premium tax credit directly to their health insurance company to help cover the cost of monthly premiums.

Advance credit payments

If you receive the benefit of advance payments of the premium tax credit to help pay your insurance premiums, it's important that you notify the Marketplace of any changes in the information the Marketplace used to compute the amount of your advance credit payments. You should promptly report any changes in your household income, your family size, and your address, as well as changes to who in your tax family (you, your spouse, if married filing jointly, and your dependents) is eligible to enroll in health insurance through an employer or a government program such as Medicare, to the Health Insurance Marketplace when they happen. Reporting changes will help reduce the possibility that you'll have to repay a significant amount of the advance payments of the credit made on your behalf, which may create an unexpected balance due when you file your federal tax return. Promptly reporting a change could also allow you to get the benefit of more advance credit payments to help with the cost of your premiums.

Filing a tax return

You must file a tax return to claim the premium tax credit. Also, for any year in which you received the benefit of advance credit payments, you must file a federal income tax return for that year to reconcile, or compare, the amount of your advance credit payments with the amount of the premium tax credit you're allowed. You (or whoever enrolled you) should have received Form 1095-A, Health Insurance Marketplace Statement, from the Marketplace with information about your coverage and any advance credit payments. You must file Form 8962, Premium Tax Credit (PTC)PDF to claim the premium tax credit and reconcile the advance credit payments with the amount of allowed premium tax credit. Attach your Form 8962 and applicable schedules to Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, U.S. Tax Return for Seniors or Form 1040-NR, U.S. Nonresident Alien Income Tax Return. If your electronically filed return is rejected for a missing Form 8962, please refer to How to correct an electronically filed return rejected for a missing Form 8962 for information about the rejection and how to correct it.


Each year the Marketplaces offer an open enrollment period to purchase health insurance for coverage in the following year. Under certain circumstances, eligible individuals may qualify for a Special Enrollment Period to enroll in a health plan through the Marketplace. The Department of Health and Human Services administers the requirements for the Marketplaces and the health plans they offer. For more information about your coverage options, financial assistance, and the Marketplace, visit or contact your Marketplace. See "Marketplace Contact Information" in The Health Insurance Marketplace.

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