What is a Premium Tax Credit?

A Premium Tax Credit is a financial assistance program designed to help lower an individual’s monthly health insurance premiums. To be eligible for this tax credit, individuals must be eligible to purchase insurance through the Marketplace and meet the income requirements. Premium Tax Credits may be taken in advanced and applied to your monthly premium or you can wait and take the tax credit at the end of the year when you file your taxes.

If you qualify for a Premium Tax Credit, you may also qualify for additional financial assistance in the form of Cost-Sharing Reductions. You can determine which financial assistance programs you and your family are eligible for by completing an application.

Related FAQs:
Am I eligible for financial assistance to help pay for health insurance?
What is a Cost-Sharing Reduction?
How do individuals receive Premium Tax Credits?