What is the Advanced Premium Tax Credit?

The Advanced Premium Tax Credit is a refundable tax credit that helps eligible individuals and families cover the cost of health insurance premiums.

Checkout this video:

What is the Advanced Premium Tax Credit?

The Advanced Premium Tax Credit (APTC) is a subsidy that helps eligible individuals and families cover the costs of their health insurance premiums. If you qualify for the APTC, you will receive a tax credit that you can use to lower your monthly health insurance premiums. In order to receive the APTC, you must enroll in a health insurance plan through the Health Insurance Marketplace.

What is the purpose of the Advanced Premium Tax Credit?

The Advanced Premium Tax Credit (APTC) is a tax credit that helps eligible individuals and families cover the premium for their health insurance. The amount of the credit is based on the estimated premium for the insurance policy, the household income, and the number of people in the household.

The APTC can be used to lower the monthly premium for health insurance purchased through the Health Insurance Marketplace. The APTC can also be used to pay for all or part of the premium for a job-based plan. If you qualify for the APTC, you must enroll in a qualifying health plan to receive the credit.

How is the Advanced Premium Tax Credit calculated?

The Advanced Premium Tax Credit (APTC) is a refundable tax credit that helps eligible individuals and families cover the premium for their health insurance plan purchased through the Health Insurance Marketplace.

The APTC is calculated based on the estimated yearly household income and the household size. You will need to provide your Marketplace application with an estimate of your household income for the upcoming year.

If you qualify for the APTC, you will receive a notice from the Marketplace and instructions on how to claim the credit when you file your federal income taxes.

How do I claim the Advanced Premium Tax Credit?

To claim the Advanced Premium Tax Credit, you must file a federal tax return for the year you had coverage. You’ll need to fill out Form 8962, which is used to reconcile any advance payments of the credit that were made on your behalf.

What are the eligibility requirements for the Advanced Premium Tax Credit?

The Advanced Premium Tax Credit is a tax credit that helps eligible individuals and families pay for health insurance purchased through the Health Insurance Marketplace. To be eligible for the Advanced Premium Tax Credit, you must:

What are the income requirements for the Advanced Premium Tax Credit?

To be eligible for the Advanced Premium Tax Credit, you must have household income that is at least 100 – 400% of the federal poverty line for your family size, and you must not be eligible for other forms of minimum essential coverage, such as Medicare, Medicaid, TRICARE, or certain types of veterans’ health coverage.

What are the citizenship and residency requirements for the Advanced Premium Tax Credit?

To be eligible for the Advanced Premium Tax Credit, you must be:
-A U.S. citizen or national, or an alien lawfully present in the United States.
-Not incarcerated.

You must also meet one of the following criteria:
-You purchased health insurance through the Health Insurance Marketplace.
-You’re enrolled in a qualified health plan offered by your job or your spouse’s job.
-You’re enrolled in a government-sponsored program, such as Medicare, Medicaid, Children’s Health Insurance Program (CHIP), TRICARE, or veteran’s health care program.

What are the other requirements for the Advanced Premium Tax Credit?

You may be eligible for the Advanced Premium Tax Credit if you enroll in a Marketplace health insurance plan and meet certain requirements. To be eligible, you must:

-Be a U.S. citizen or national (or be lawfully present).
-Not be incarcerated.
-Have household income within certain limits for your family size.
In addition, you must:

-Not have access to affordable coverage that meets your needs. This means your required contribution towards premiums is no more than 8.05% of your household income, or you would qualify for Medicaid coverage if it were available to you in your state.
-Not have access to affordable employer-sponsored coverage that meets your needs. This means your required contribution towards premiums for an employer plan is no more than 9.69% of your household income for self-only coverage, or 13.41% of household income for family coverage, or you would qualify for Medicaid coverage if it were available to you in your state.
If you have any questions about the Advanced Premium Tax Credit or other subsidies available through the Marketplace, please contact us at 1-800-318-2596 (TTY: 1-855-889-4325).

How do I apply for the Advanced Premium Tax Credit?

The Advanced Premium Tax Credit (APTC) is a refundable tax credit that helps eligible individuals and families cover the premium costs of their health insurance. If you are eligible for the Advanced Premium Tax Credit, you can choose to have some or all of the credit paid in advance to your insurance company to lower your monthly health insurance premium payments.

How do I apply for the Advanced Premium Tax Credit through the Marketplace?

You can only get the Advanced Premium Tax Credit through the Marketplace. You fill out an application that asks questions about your family and finances. Based on your answers, the Marketplace will tell you if you can get the Advanced Premium Tax Credit and how much you can get.

The amount of the credit is based on the estimated amount of taxes you’ll owe for the year, your expected household income for the year, and the number of people in your household.

You don’t have to pay back the credit in advance, but you’ll have to reconcile (compare) the credit you actually received with the amount of premium tax credit you were eligible for when you file your taxes for the year. If it turns out you received more premium tax credit than you were eligible for, you’ll have to pay some or all of it back when you file your federal income tax return. If it turns out you received less premium tax credit than you were eligible for, you may get a refund when you file your taxes.

To apply for the Advanced Premium Tax Credit, visit Healthcare.gov.

How do I apply for the Advanced Premium Tax Credit through my insurance company?

You can contact your insurance company to see if you qualify for the Advanced Premium Tax Credit. If so, you will need to provide your insurance company with some information, including your household income and the number of people in your household. Your insurance company will then help you fill out a form to apply for the credit.

What if I don’t enroll in a health plan or I don’t have health coverage?

If you don’t have health coverage, you’ll have to pay a fee. This fee is sometimes called the individual shared responsibility payment. You’ll pay the fee for each month you (or your tax dependents) don’t have coverage and aren’t exempt.

What are the penalties for not having health coverage?

If you can afford health insurance but choose not to buy it, you must pay a fee. This is sometimes called the individual mandate. You pay the fee for each month you (or your dependents) don’t have health coverage.

The fee for not having health insurance is sometimes called the individual shared responsibility payment.

You’ll make your first payment when you file your federal income tax return for the previous year (for example, when you file in April 2019, you’ll be making a payment for 2018). The IRS will subtract the payment from any refund you’re due. If you owe money on your taxes, they’ll add the payment to your bill.

The fee increases every year. In 2019, the fee is 2% of your yearly income or $325 per person for each month without coverage ($162.50 per child under 18). In 2020, it goes up to 2.5% of income or $695 per person ($347.50 per child under 18). And starting in 2021, it reverts back to 2% or $695 per person ($347.50 per child under 18), whichever is greater.”

What are the exceptions to the penalties for not having health coverage?

The fee for not having health coverage does not apply if you have a “gap” in coverage for less than 3 months, or if you qualify for one of the many exemptions from the fee. For example, you may be exempt from the fee if you:

-Had an illness or a medical condition that prevented you from getting coverage
-Lost your job and your health insurance coverage along with it
-Make so little money that you don’t have to file a tax return
-Are a member of a federally recognized tribe or eligible for services through an Indian Health Services provider
-Were in jail, prison, or a similar institution

How can I get help paying for my health insurance?

The Advanced Premium Tax Credit (APTC) is a refundable tax credit that helps eligible individuals and families cover the premium payments for their health insurance. If you qualify for the APTC, you can choose to have some or all of your premium payment covered by the credit.

What are the different types of financial assistance?

There are two types of financial assistance available to help you pay for health insurance coverage through the Health Insurance Marketplace: premium tax credits and cost-sharing reductions.

Premium tax credits can be used right away to lower your monthly health insurance bill. Cost-sharing reductions can also lower your out-of-pocket costs for deductibles, copayments, and coinsurance.

You may be eligible for both types of financial assistance if you purchase a health insurance plan through the Health Insurance Marketplace and your household income is below 400% of the federal poverty level.

How do I apply for financial assistance?

You may be able to get help paying for your health insurance premiums through the Advanced Premium Tax Credit (APTC). The APTC is a subsidy that is paid directly to your insurance company to help lower the cost of your monthly premiums.

If you qualify for the APTC, you will need to file a tax return to claim the credit. You can file your taxes electronically using IRS Form 8962. For more information about the APTC, including how to apply, please visit https://www.healthcare.gov/tax-credits-cost-assistance/.

Scroll to Top