The Affordable Care Act (ACA) premium tax credit is a refundable credit designed to help eligible individuals and families afford health insurance. The credit is reconciled through a process on your annual federal income tax return, meaning your final eligibility and the amount of the credit are determined when you file your taxes. The calculation of the premium tax credit depends on several factors, including your household size, income, and the cost of the benchmark health plan available in your area.
If any of these factors change during the year, such as an increase in income, it is important to report those changes to the Health Insurance Marketplace promptly. Failure to report changes can result in significant tax liability at the end of the year, as you may be required to repay excess credit amounts received in advance.
Regarding your specific question, TurboTax does not have the ability to track your taxable activities or notify you of changes related to the premium tax credit throughout the year. However, the TurboTax software provides detailed explanations of how the credit works and its potential tax implications during filing season. For more information, you can read this additional article about the premium tax credit and its tax effects:
Health Care and Your Taxes: What's the Connection?
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