Health Insurance Premium Tax Credit

The premium tax credit (PTC) helps eligible individuals with low or moderate income pay for health insurance bought through the Health Insurance Exchange (or Marketplace). If an eligible individual chooses advance payment of the credit, the Exchange will estimate a credit that is paid directly to the individual’s insurance company to lower the cost of the monthly premium. Alternatively, individuals eligible for the credit can elect to receive the credit themselves when they file their tax returns for the year. If the credit is more than what the person owes in taxes, or if the person owes no taxes at all, the person will receive a refund.