"United States Premium Tax Credit (PTC)"


What is the Premium Tax Credit ?

The Premium Tax Credit is a refundable tax credit and the IRS will pay it to eligible families who receive health insurance through a health care exchange (market) during the tax year.

How Does the Premium Tax Credits Work ?

For the majority of Marketplace policies, PTC lower your premium. The PTC is typically paid in advance to the insurer issuing the eligible plan. The PTC is deducted monthly from the premiums of eligible plans.

Who is Eligible for Premium Tax Credit ?

If they and their insurance plans satisfy further requirements, married taxpayers who file a combined return and single taxpayers who submit their own returns are both eligible for the PTC.

What are the Income Limit for Premium Tax Credit ?

Those with income between 100% and 400% of the FPL qualify for premium tax credits. And if you earn more than 400% of the FPL, you may still qualify for health insurance discounts.

How Much is the Premium Tax Credit ?

The amount of the premium tax credit you may receive depends on your income and the cost of Marketplace health plans in your area.

Which Health Plans Qualify for Premium Tax Credit ?

Plans available on federal and state health insurance marketplaces are referred to as qualified plans.

How to Claim the Premium Tax Credit ?

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To claim PTC, you must submit Form 8962 together with your federal income tax return.