"Tell me more about premium tax credits."

Premium tax credits help lower the cost of coverage purchased through the Health Insurance Marketplace for people with incomes that qualify. Premiums are the monthly bill you pay for health insurance. The premium tax credit can work in two ways:

  1. Get it now: Get the credit each month you have Marketplace coverage. This is called an advanced premium tax credit. The Marketplace sends the money directly to your health insurance company, and you pay a lower monthly premium. 
  2. Get it later. You pay the total premium every month, but you get a refund on your taxes after the calendar year is over. 

Most individuals with a household income between 100 and 400% of the Federal Poverty Level are eligible for a tax credit, but the exact amount of the credit will depend on your income. The lower your income, the larger tax credit you will receive. If you enrolled in coverage through healthcare.gov, you can view information on any premium tax credits you either are receiving or are eligible to receive by going to the tab called “My Plans”.

You apply for the premium tax credit when you apply for coverage in the Marketplace. In the application, you must give the Marketplace permission to collect your tax data from the IRS every year. That information will be used to calculate how much financial assistance you qualify for.

Do you think you got an advance premium tax when you enrolled last year?

"Yes, I received a premium tax credit last year."

Because you got a tax credit for your health coverage, you must file a federal tax return.

“Why do I need to file taxes?”

You need to file taxes to make sure that you got the correct amount of financial help based on your household size and income. This is called reconciliation. Also, the Health Insurance Marketplace will discontinue paying the advanced premium tax credits next year for consumers who don’t file a federal tax return and reconcile tax credits this year.

“What do I need to know before filing taxes?”

You will receive an IRS Form 1095-A in the mail from the Marketplace that shows your health coverage and amount you received in advance premium tax credits each month. If Form 1095-A was lost, never received, or is incorrect, you can contact your Marketplace directly for a copy. You should wait to file your taxes until you receive IRS Form 1095-A, which should arrive in early February.

Because you received an advance premium tax credit, you need to file IRS Form 8962 with your taxes. Use IRS Form 1095-A to help you fill out IRS Form 8962.

“I had a short gap in coverage (less than three consecutive months). What do I need to do?”

You will also need to file IRS Form 8965 for Health Coverage Exemptions. Most Americans are required to have health insurance or pay a fee, but if you only had a short gap in coverage, you are exempt from the fee.

Learn more:

"No, I did not get a premium tax credit last year."

You may still be eligible for a tax credit for 2015, but you must file your 2015 federal tax return including IRS Form 8962 to find out.

“What do I need to know before filing taxes?”

You will receive an IRS Form 1095-A in the mail from the Marketplace that proves your health coverage. If Form 1095-A was lost, never received, or is incorrect, you should contact your Marketplace directly for a copy. You should wait to file your taxes until you receive IRS Form 1095-A, which should arrive in early February.

File IRS Form 8962 with your taxes to see if you qualify for a 2015 premium tax credit. Use IRS Form 1095-A to help you fill out IRS Form 8962.

“I had a short gap in coverage (less than three consecutive months). What do I need to do?”

You will also need to file IRS Form 8965 for Health Coverage Exemptions. Most Americans are required to have health insurance or pay a fee, but if you only had a short gap in coverage, you are exempt from the fee.

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