Advance Premium Tax Credit is a tax credit you can take in advance to lower your monthly health insurance payment (or “premium”). When you apply for coverage in the Health Insurance Marketplace, you estimate your expected income for the year. If you qualify for a premium tax credit based on your estimate, you can use any amount of the credit in advance to lower your premium.
- If at the end of the year you’ve taken more premium tax credit in advance than you’re due based on your final income, you’ll have to pay back the excess when you file your federal tax return.
- If you’ve taken less than you qualify for, you’ll get the difference back.
In the link below, you can estimate your credit based on your income information. You can use the income amounts when you applied for your insurance versus your actual income amounts to see the difference. It is possible that you have to pay back the entire credit.
Advance Premium Tax Credit
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