Premium Tax Credit
The Premium Tax Credit (PTC) is a federal tax credit for people who purchase health insurance through the marketplace. The PTC helps reduce a person’s monthly health insurance premium.
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File a simple tax return to learn how much money you can receive.
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The Inflation Reduction Act extended eligibility for premium tax credits to reach people with incomes over 400% FPL ($54,360 for a single person in 2023 or $111,000 for a family of 4). You are eligible for the PTC if you meet the income requirements and if you purchase health insurance through your state’s marketplace.
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The amount of PTC money you might get is based on a sliding scale. People with lower incomes receive a larger credit to help them cover their health insurance costs. You can choose to have your PTC money go directly to offset your health insurance premium. This is called advance payments of premium tax credit (APTC). Or you can get it as a lump sum when you file your taxes.
For APTC, you can choose to have your state’s health insurance Marketplace calculate an estimated credit that is paid to your insurance company to lower the amount you pay for your monthly premium. If you choose this option, your credit will be automatically applied to your monthly premium, reducing the amount of money you pay out of pocket.
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No. The PTC does not change the amount of money you can get in health insurance premium subsidies.
Health insurance premium subsidies are not tax credits even though your income qualifies your eligibility. You can estimate how much subsidy you may qualify for here.