An Interactive Guide to the Premium Tax Credit
Based on Form 8962, this tool simplifies how the Premium Tax Credit (PTC) helps make Marketplace health insurance more affordable.
Two Ways to Get the Credit
Advance Payments (APTC)
Estimate your income to get advance credit payments sent directly to your insurer each month. This lowers your monthly premium bill throughout the year.
Net Premium Tax Credit (PTC)
If you don't take advance payments, you can claim the full credit when you file your tax return. This will reduce your tax owed or increase your refund.
APTC Reconciliation Simulator
Enter your annual information to see if you will receive a net credit or need to repay excess advance payments. Your Form 1095-A from the Marketplace provides the premium and APTC amounts.
How Your Premium Is Covered
Key Rules Explained
For the PTC, your household income is your Modified Adjusted Gross Income (MAGI). This is your Adjusted Gross Income (AGI) from your tax return plus any tax-exempt interest and non-taxable Social Security benefits. You must also include the MAGI of any dependents you claim who are required to file their own tax return.
If you received more APTC than you were eligible for, you may have to repay the excess amount. However, there is a limit on how much you have to repay if your household income is less than 400% of the federal poverty line. This protects you from a large, unexpected tax bill if your income increases during the year. For 2024, the repayment limits range from $750 to $3,150 for families, depending on income.