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Glossary
Tax credits you can use to lower your insurance payment.
Premium (opens in new tab) tax credits are a tool designed to help eligible individuals and families with low or moderate incomes afford health insurance. They’re tax credits that you receive at the end of the year when you pay your taxes and are based on the income estimate and household information you provide when you apply through the Health Insurance Marketplace (opens in new tab).
You qualify for a premium tax credit if your estimated income falls between 100% and 400% of the federal poverty level (opens in new tab) for your household size. Those who have a lower income are given a larger credit. And at the end of the year, you’ll need to complete Form 8962, Premium Tax Credit (PTC) when you file your tax returns for the year. If the amount of the tax credit is larger than the amount of taxes you’re required to pay, you will receive a refund on your taxes.
To learn more about how to estimate the income for your household, visit our FAQ on Modified Adjusted Gross Income (MAGI) (opens in new tab) and check out some of our Insider hacks that can save you money on health insurance (opens in new tab).