Fact Sheets

Millions of Americans qualify for financial assistance to help cover the cost of health insurance. This subsidy, called the Premium Tax Credit, is available as soon as you sign up for health insurance through the Health Insurance Marketplace (“the Marketplace”), and helps pay for your monthly health insurance premium. These resources offer detailed information on everything from how the Premium Tax Credit works, to life changes that can impact your Premium Tax Credit, to what happens at tax time.

Millions of Americans qualify for financial assistance to help cover the cost of health insurance. This subsidy, called the Premium Tax Credit, is available as soon as you sign up for health insurance through the Health Insurance Marketplace (“the Marketplace”), and helps pay for your monthly health insurance premium. These resources offer detailed information on everything from how the Premium Tax Credit works, to life changes that can impact your Premium Tax Credit, to what happens at tax time.

Basics on the Premium Tax Credit

These materials are designed to give you general information about available financial assistance to help cover the cost of health insurance, specifically the new Premium Tax Credits.

Life changes that could impact your Premium Tax Credit

Most recipients elect to have their Premium Tax Credit paid directly to the insurer each month to lower their premiums, so they don’t have to wait until they file their taxes to get it. If you elect to have your Premium Tax Credit paid directly to your insurer each month, the credit is based on your projected annual income (how much you think you will make) and household size for 2016. If there are changes to your family’s income or household size before the end of 2016, it is important to report those changes to the Marketplace as soon as possible, so that an adjustment to your Premium Tax Credit can be made.

See our Obamacare & Taxes fact sheet about life changes that could impact the amount of your Premium Tax Credit (and also potentially make you eligible for a special enrollment period to adjust other aspects of your health insurance coverage).

 

Published On: November 3, 2015Associated Issues: Family Tax CreditsHealth BenefitsHealth CareHealth Care & Reproductive RightsPoverty & Economic SecurityTax & BudgetTax Credits Outreach