Tax credits are used to lower the cost of your monthly premium when you enroll in a health plan on the Marketplace. Your tax credits are based on your estimated income and household information. They are designed to make your health plan more affordable.
Who Can Get These Credits?
- You qualify if your income is between 100% and 400% of the Federal Poverty Level.
- You may qualify for a premium tax credit if your income is above 400% FPL.
- You may be eligible for a special enrollment period if your income is at or below 150% FPL.
How Does It Work?
It's pretty flexible! You can choose how to use your tax credit:
- Use it all now to lower your monthly payments
- Use some now and save some for later
- Save it all for when you file your taxes
A Word of Caution
Be careful when estimating your income:
- If you use more tax credits than you should have, you must pay back the difference when you file taxes.
- If you use less than you qualify for, you'll get the difference back as a refund.
Important Things to Remember:
- You can only get this tax credit through the Health Insurance Marketplace.
- Your credit amount is based on your estimated income and household information.
- If your income changes, you can adjust your tax credit amount during the year.
The Bottom Line
Premium tax credits make health insurance much more affordable. If you're shopping for health insurance, check if you qualify. While you can buy health insurance from many places, the Marketplace is the only place to get these valuable tax credits. Take advantage of potential savings!
