Determine if You Can Benefit from the Premium Tax Credit

IRS Health Care Tax Tip 2015-21, March 26, 2015

The premium tax credit is a credit for certain people who enroll, or whose family member enrolls, in a qualified health plan offered through a Marketplace. The credit provides financial assistance to pay the premiums by reducing the amount of tax you owe, giving you a refund, or increasing your refund amount.

You must file Form 8962 PDF to compute and take the PTC on your tax return.

You can take the PTC for 2014 if you meet all of these conditions.

For at least one month of the year, all of the following were true:

• An individual in your tax family was enrolled in a qualified health plan offered through the Marketplace.
• The individual was not eligible for minimum essential coverage, other than coverage in the individual market.
• The portion of the enrollment premiums for the month for which you are responsible was paid by the due date of your tax return.

To be an applicable taxpayer, you must meet all of the following requirements:

• For 2014, your household income is at least 100 percent but no more than 400 percent of the Federal poverty line for your family size.
• No one can claim you as a dependent on a tax return for 2014.
• If you were married at the end of 2014, you must generally file a joint return. However, filing a separate return from your spouse will not disqualify you from being an applicable taxpayer if you meet certain requirements.

For more information, see the instructions for Form 8962, Premium Tax Credit (PTC) PDF on IRS.gov/aca.

You can also use our interactive tool, Am I eligible to claim the Premium Tax Credit?, to find out if you are eligible.

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