Should I take the Premium Tax Credit in advance as a monthly subsidy?
It depends on your situation. Below are the main advantages and disadvantages of each option.
Taking the Premium Tax Credit as a monthly subsidy
The credit acts like a discount and reduces what you pay monthly for coverage.
However, if your family’s situation changes during the year, the premium tax credit you qualify for also changes. If you forget to update your original estimates, you may need to pay back some or all of your credit on your tax return.
Claiming the Premium Tax Credit when you file your tax return
Because the credit is calculated with your actual 2016 tax information instead of estimates, you don’t carry the risk of having to pay it back.
However, you won’t get a discount on your monthly health insurance bill. Instead, you’ll have to wait until you file your taxes to get your credit.