Premium Tax Credit (PTC)
A refundable credit to help eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace.
Estimate Your Savings
This is a simplified estimate. Actual savings depend on your complete tax situation.
Eligibility
Individuals purchasing health insurance through the Marketplace
Requirements
- 1Must purchase coverage through Health Insurance Marketplace
- 2Income between 100-400% of federal poverty line
- 3Not eligible for employer-sponsored coverage
Required Tax Forms
Understanding the Premium Tax Credit (PTC)
A refundable credit to help eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace.
Tax credits directly reduce the amount of tax you owe, making them more valuable than deductions which only reduce taxable income. On average, taxpayers save approximately $6,000 with this credit.
To claim this credit, you will need to file Form 8962 and Form 1095-A with your annual tax return. Make sure you meet all eligibility requirements and keep documentation of qualifying expenses or activities.
Calculate Your Full Tax Picture
Use our free tax calculators to estimate your total tax liability and savings.
Browse Credits by Category
Frequently Asked Questions
What is the Premium Tax Credit (PTC)?
A refundable credit to help eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace.
How much is the Premium Tax Credit (PTC) worth?
The average savings from the Premium Tax Credit (PTC) is approximately $6,000 per year, depending on your specific situation.
Who is eligible for the Premium Tax Credit (PTC)?
Individuals purchasing health insurance through the Marketplace. Key requirements include: Must purchase coverage through Health Insurance Marketplace; Income between 100-400% of federal poverty line; Not eligible for employer-sponsored coverage.
What forms do I need to claim the Premium Tax Credit (PTC)?
You will need to file Form 8962, Form 1095-A with your tax return to claim this credit.
Is the Premium Tax Credit (PTC) refundable?
Most business and energy tax credits are nonrefundable but can be carried forward to future tax years.
Can I claim the Premium Tax Credit (PTC) with other tax credits?
Yes, in most cases you can claim the Premium Tax Credit (PTC) along with other eligible tax credits. However, some credits have interactions that may reduce the benefit. Consult a tax professional for your specific situation.