What is Advance Premium Tax Credit?

The Advance Premium Tax Credit (APTC) is a refundable tax credit that helps eligible individuals and families cover the premium costs of their health insurance.

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Introduction

The Advance Premium Tax Credit (APTC) is a refundable tax credit that helps eligible individuals and families pay for health insurance purchased through the Health Insurance Marketplace. If you qualify for the APTC, you can choose to have some or all of the credit paid in advance to your insurer to lower your monthly premium costs.
You must file a federal income tax return to claim the credit even if you do not owe any taxes.

What is Advance Premium Tax Credit?

The Advance Premium Tax Credit (APTC) is a refundable tax credit that helps eligible individuals and families cover the premium costs of their health insurance plans. The credit is advanceable, meaning it can be paid in advance to the insurer to lower your monthly premium costs. To receive the credit, you must enroll in a qualified health plan through the Health Insurance Marketplace.

How Advance Premium Tax Credit works

The Advance Premium Tax Credit (APTC) is a subsidy that lowers the monthly premiums for people who enroll in a qualified health plan through the Health Insurance Marketplace. The amount of the subsidy is based on your income and family size. You can choose to have the subsidy paid directly to your insurance company to lower your monthly premium, or you can receive the subsidy as a tax credit when you file your taxes.

If you qualify for a subsidy, you will need to update your information with the Marketplace each year to make sure you are still eligible. If your income or family size changes during the year, you may be eligible for a different amount of subsidy, or you may no longer qualify for a subsidy. You can report changes in your circumstances to the Marketplace at any time.

How to claim Advance Premium Tax Credit

Advance Premium Tax Credit can help make your health insurance more affordable. If you qualify, you can choose to have some or all of your premium paid in advance to your insurance company. This can lower what you pay each month. And when it’s time to file your taxes, you’ll reconcile the amount of the credit you actually received with the amount you were eligible for.

Conclusion

The Advance Premium Tax Credit (APTC) is a refundable tax credit that helps eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace. If you qualify for the APTC, you can choose to have some or all of the credit paid in advance to your insurer to lower your monthly premium payments. You’ll reconcile the advance payments when you file your federal income tax return for the year.