Premium tax credits are refundable credits designed to help eligible individuals and their families afford health insurance purchased through the Health Insurance Marketplace. When you enroll in a Marketplace insurance policy, you can choose the amount of the tax credit you'd like to accept, if any, which lowers the amount you pay for your monthly premiums.
Who qualifies for a Premium Tax Credit?
Premium tax credits are available to those with incomes at least 100, but no more than 400 percent of the federal poverty line, based on family size. In order to be eligible for a premium tax credit, individuals must be United States citizens or lawfully present in the United States.
How will I know if I have a Premium Tax Credit?
Generally, premium tax credit adjustments will appear on the monthly billing invoices sent from your insurance company. You can also check with the Health Insurance Marketplace directly to see if you qualify or have accepted any part of a premium tax credit.
Important to know:
Premium tax credits aren't available to those who are eligible for other “minimum essential coverage,” which includes insurance such as Medicare, Medicaid, or employer-provided coverage that is considered affordable.