Premium tax credits are refundable credits designed to help eligible individuals and their families afford health insurance purchased through the Health Insurance Marketplace. When you enroll in a Marketplace insurance policy, you can choose the amount of the tax credit you'd like to accept, if any, which lowers the amount you pay for your monthly premiums.
Who qualifies for a Premium Tax Credit?
Premium tax credits are available to those with incomes between 100 percent, but no more than 400 percent of the federal poverty line, based on family size. In order to be eligible for a premium tax credit, individuals must be United States citizens or lawfully present in the United States.
How will I know if I have a Premium Tax Credit?
Generally, premium tax credit adjustments will appear on the monthly billing invoices sent from your insurance company. You can also check with the Health Insurance Marketplace directly to see if you qualify or have accepted any part of a premium tax credit.
For more information on how a premium tax credit can affect your ICHRA benefit see our guidance on Making Your Opt-In or Opt-Out Decision