References: Healthcare.gov & IRS.gov

What is a Premium Tax Credit?

A Premium Tax Credit is a refundable credit that helps eligible individuals and families lower their monthly insurance premiums when they enroll in a plan through the Health Insurance Marketplace. Whether or not someone receives a tax credit and how much they receive is based on income estimate and household information.

Who is eligible to receive a tax credit?

Through the Take Command Health Plan Finder, when you fill out your information, we'll be able to tell you if you are eligible to receive a tax credit.

You are eligible to receive a tax credit if you:

  • Have household income that falls within a certain range 

  • Do not file a tax return using the filing status of Married Filing Separately. 

  • Cannot be claimed as a dependent by another person.

  • Have health insurance coverage through a Health Insurance Marketplace (we can help with this!)

  • Are not able to get affordable coverage through an eligible employer-sponsored plan

  • Are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE.

How much will I qualify for?

Through the Take Command Health Plan Finder, when you fill out your information, we'll be able to tell you how much you qualify for. The amount depends on:

  • How many people are in your household, including yourself, your spouse if married, and anyone you'll claim as a tax dependent 

  • Your estimated household income

How do I apply it towards my premiums?

You can use all, some, or none of your premium tax credit in advance to lower your monthly premium.

  • If you use more advance payments of the tax credit than you qualify for based on your final yearly income, you must repay the difference when you file your federal income tax return.

  • If you use less premium tax credit than you qualify for, you’ll get the difference as a refundable credit when you file your taxes.

You can buy health insurance through other sources, but the only way to get a premium tax credit is through the Health Insurance Marketplace.

What if my income is too high for a premium tax credit?

Unfortunately, if your income is too high, then you won't qualify for a premium tax credit and will have to pay full price for your insurance premium.

How does my Premium Tax Credit work with my HRA?

The short answer is, it depends on the HRA type. You can read more about ICHRAs and tax credits here and QSEHRA and tax credits here.

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