The 2010 Affordable Care Act (ACA) now allows qualified families to get a tax credit to help pay for health insurance bill (or “premium”). A tax credit can reduce what you pay for insurance through the Health Insurance Marketplace. You can use these tax credits, based on your estimate of your expected household income for 2016, to lower your monthly insurance premium.
In order to qualify for a tax credit, the following must be true:
- You don’t have health insurance through a job, Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), or another source that provides qualifying coverage.
- You will file a 2016 federal tax return in 2017.
- Use the chart to determine if your family income qualifies you.
If at the end of the year you’ve taken more advance payments of the premium tax credit than you’re due based on your final income, you must repay the excess with your 2016 federal tax return. If you’ve taken less advance payments than you qualify for, you’ll get the difference when you file your taxes.
