Advanced Premium Tax Credit

What is the Advanced Premium Tax Credit? 

If you are not able to get affordable healthcare coverage through an employer that provides minimum value, you may qualify for The Advanced Premium Tax Credit (APTC). The credit helps low income individuals and families afford health insurance that is purchased through the Health Insurance Marketplace, also known as the Exchange. The credit can either be paid to your insurance company to reduce your monthly healthcare premium or you can take advantage of the benefit when you file your taxes at the end of the year. The credit is automatically paid to your insurance company, unless you choose to receive it as part of your tax return.

What are the eligibility requirements? 

To qualify, you must not be eligible for healthcare coverage through either employer or government programs like Medicaid, Medicare, CHIP or TRICARE.

Is the credit refundable?

The Advanced Premium Tax Credit reduces the amount of taxes you owe. If your credit is greater than your tax bill then the remaining amount will be issued to you as a refund on your taxes. If you have no tax liability, you can receive the full amount of the credit as a refund.