![]() Another person can't claim you as a dependent on their return.Your income needs to fall within a certain range.You can't be eligible for health care coverage through alternative options such as your employer or the government.You must get your health care coverage through the Marketplace.You must meet all of the following criteria to qualify for the premium tax credit: Eligibility requirements for the premium tax credit It is important to note that for tax year 2020, the American Rescue Plan Act of 2021 suspended the requirement to repay any excess of the advance payments of the Premium Tax Credit when filing your Form 1040. But if you use less of the premium tax credit during the year than you qualified for, you'll receive the difference as a refundable credit on your return. If you use more of your premium tax credit than your final taxable income allows, you'll need to repay the difference when filing your Form 1040 at tax time. You may use some or all of this credit in advance to lower your monthly premium costs, leaving money in your pocket. If your estimated income falls between 100% and 400% of the federal poverty level for a household of your size, you can claim the premium tax credit. The amount of credit you receive depends on your estimated income and your household information, which you'll report on any application you file with the Marketplace. You can also claim the premium tax credit after the fact on your tax return with your actual income. This counts as the advance premium tax credit. You can receive this credit before you file your return by estimating your expected income for the year when applying for coverage in the Marketplace. The premium tax credit is a refundable tax credit that can help lower your insurance premium costs when you enroll in a health plan through the Health Insurance Marketplace. You must meet certain requirements to claim this refundable tax credit and file Form 8962 with your tax return.īut what is Tax Form 8962? This form reports information related to claiming an offset to the cost of purchasing health insurance through the national Health Insurance Marketplace. The premium tax credit came about after the Affordable Care Act in 2009. ![]() ![]()
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