Premium Tax Credit

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Premium Tax Credit


A tax credit you can use to lower your monthly insurance premium when you enroll in a plan through the Health Insurance Marketplace.

Your tax credit is based on the income estimate and household information you put on your Marketplace application.

♦ If your estimated income falls between 100% and 400% of the federal poverty level for your household size, you qualify for a premium tax credit.

You can use all, some, or none of your premium tax credit in advance to lower your monthly premium.

♦ If you use more advance payments of the tax credit than you qualify for based on your final yearly income, you must repay the difference when you file your federal income tax return.

♦ If you use less premium tax credit than you qualify for, you’ll get the difference as a refundable credit when you file your taxes.

You can buy health insurance through other sources, but the only way to get a premium tax credit is through the Health Insurance Marketplace.

See also: Advanced Premium Tax Credit

Related content


• What is the Marketplace ?

• Who can use the Marketplace ?

Tax Credits

• Premium Tax Credit

• Can I get a subsidy ?