How Premium Tax Credits Work

The premium tax credit is a form of financial assistance that may lower the monthly premium for eligible people who buy coverage through the ACA Marketplace. Whether you qualify, and how much, depends on your household income, size, and other factors.

If you're eligible, you may choose to have some or all of the premium tax credit paid in advance to your insurance company to lower your monthly premium, or you may claim the credit when you file your federal tax return. Advance premium tax credits are reconciled when you file your taxes, so it's important to report household or income changes to the Marketplace during the year.

Eligibility and amounts vary, and not everyone qualifies. A consultation can help you understand whether financial assistance may apply to your situation before you decide on a plan.