The premium tax credit (aka PTC) is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. To get this credit, you must meet certain requirements and file a tax return.
You are eligible for the premium tax credit if you meet all of the following requirements. You:
- Have household income that falls within a certain range (see comments below article).
- Do not file a tax return using the filing status of Married Filing Separately.
- There is an exception to this rule that allows certain victims of domestic abuse and spousal abandonment to claim the credit using Married Filing Separately.
- Cannot be claimed as a dependent by another person.
- Meet these additional requirements: In the same month, you or a family member:
- Have health insurance coverage through a Health Insurance Marketplace.
- Are not able to get affordable coverage through an eligible employer-sponsored plan that provides minimum value.
- Are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE.
- Pay the share of premiums not covered by advance credit payments.
Change in Circumstances
If you benefit from advance payments of the premium tax credit, it is important to report life changes to the Marketplace as they happen throughout the year.
Certain changes to your household, income or family size may affect the amount of your premium tax credit. These changes can alter your tax refund, or cause you to owe tax. Reporting these changes promptly will help you get the proper type and amount of financial assistance.
You can check your eligibility for the Premium Tax Credit at irs.gov, here.