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- What is the Premium Tax Credit?
What is the Premium Tax Credit?
by TurboTax• Updated 7 months ago
The Premium Tax Credit is a tax credit to help make health coverage more affordable when you purchase health insurance from Healthcare.gov or a state Marketplace.
You qualify for the credit if:
- Your health insurance plan is purchased through Healthcare.gov or a state Marketplace.
- Your household income falls between 100% and 400% of the federal poverty level for your household size.
- You don't file as Married Filing Separately (with exceptions for victims of domestic abuse and spousal abandonment).
- You can't be claimed as a dependent by another person.
If you qualify, you can either take your tax credit as a monthly subsidy to help pay for your insurance costs or claim the entire credit when you file your tax return.
Regardless of which choice you make, when you enter the information from your 1095-A, we’ll calculate your Premium Tax Credit and prepare Form 8962 for you to file with your tax return.
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