Interactive Tax Benefit Analyzer
Check your eligibility for the ACA Premium Tax Credit (PTC) and the Earned Income Tax Credit (EITC) and calculate your estimated benefits.
ACA Premium Tax Credit (PTC) Analyzer
A refundable tax credit to help you afford health insurance purchased through the Health Insurance Marketplace. The credit amount is based on your household income and family size.
Enter Your Information (for 2025 Coverage)
MAGI = AGI + tax-exempt interest + non-taxable Social Security benefits
Estimated Results
Earned Income Tax Credit (EITC) Analyzer
A powerful refundable tax credit for low- to moderate-income working individuals and families. You can get a refund even if you don't owe any tax.
Enter Your Information (for 2024 Tax Filing)
Estimated Results
PTC vs. EITC: Side-by-Side Comparison
| Feature | ACA Premium Tax Credit (PTC) | Earned Income Tax Credit (EITC) |
|---|---|---|
| Main Purpose | Reduce health insurance premium costs | Supplement income for working families |
| Key Benefit | Lowers monthly premium or provides a refund at tax time | Reduces tax owed and provides a cash refund |
| Income Basis | Modified Adjusted Gross Income (MAGI) vs. Federal Poverty Line (FPL) | Earned Income and Adjusted Gross Income (AGI) |
| Core Requirement | Enroll in a Marketplace health plan | Must have earned income and a valid SSN |
| Family/Children | FPL standard varies by household size | Credit amount varies dramatically by number of qualifying children |
| Is it Refundable? | ✅ Yes | ✅ Yes |
Tax Strategy: Maximizing Both Benefits
1. Income Character Matters: EITC Does Not Hurt Your PTC
This is the most critical strategic point. The Earned Income Tax Credit (EITC) refund you receive is NOT included in the Modified Adjusted Gross Income (MAGI) used to calculate your Premium Tax Credit (PTC). This means receiving a large EITC refund will not reduce your health insurance subsidy. The two benefits work independently to provide a powerful two-pronged financial safety net.
2. Lower Your MAGI with Retirement Contributions
Since the PTC is based on MAGI, legally reducing your taxable income is key to increasing your subsidy. The most effective way is to contribute to a pre-tax retirement account like a traditional 401(k) or a traditional IRA. These contributions lower your AGI (and thus your MAGI), which can directly increase the amount of PTC you are eligible for.
3. Understand the "Qualifying Child" Rules Precisely
The EITC amount can change by thousands of dollars based on the number of qualifying children. For separated or divorced parents, it is crucial to understand who can claim the child for EITC purposes based on residency and other "tie-breaker" rules. A simple decision about which parent claims the child can have a massive impact on the total household tax refund.