The premium tax credit will come from your Form 1095-A, Health Insurance Marketplace Statement. It is a refundable tax credit that will help you lower your insurance premium costs when you enroll in a health plan through the Health Insurance Marketplace or help you cover those costs later come tax time.
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 more tax.
When you enroll in coverage, the Health Insurance Marketplace estimates the amount of the premium tax credit you will be allowed.
This estimate is based on the following:
- Your family composition
- Your household income
- Whether those you are enrolling are eligible for other non-Marketplace coverage
Based on that estimate from the Marketplace, you will have to choose to have all, some, or none of your "estimated credit" paid in advance directly to your insurance company on your behalf.
These "advance payments" of the premium tax credit will lower what you pay out-of-pocket for your monthly healthcare premiums.
If you choose to receive "advance payments" of the premium tax credit, you must report "certain life events" to the Marketplace through out the tax year. These are called "changes in circumstances".
If your household income goes up or the size of your household is smaller than you must report this to the Marketplace. Then the Marketplace will lower the amount of your advance credit payments.
If you don't report the change and your advance credit payments are more than the premium tax credit you are allowed, you have to reduce your refund or increase the amount of tax you owe by all or a portion of the difference when you file your federal tax return.
These "changes in circumstances" can significantly affect your credit include:
- Lump-sum payments of Social Security and Social Security Disability benefits
- Lump-sum taxable distributions from an IRA or Retirement plan
- Debt forgiveness or cancellation
- Marriage or divorce
- Birth or adoption of a child
- Filing status changes
- Gaining or losing eligibility for employer or governmental health care coverage
If you had any of these changes, that may be the cause of the loss of your premium tax credit in 2024.
If you have questions about your Premium Tax Credit (PTC) or Form 1095-A, you should contact your Marketplace directly.
You can also call the IRS Healthcare Hotline for ACA questions at 800-919-0452.
Click here for "Questions and answers on the Premium Tax Credit"
Click here for "Premium Tax Credit: Claiming the credit and reconciling advance credit payments"
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
