When you apply for Marketplace coverage, you’ll find out if you qualify for the premium tax credit that lowers your premium.
The amount of your premium tax credit depends on the household size and estimated income you put on your Marketplace application.
Find out if your household size and estimated income qualifies for the premium tax credit.
You can use some, all, or none of the tax credit each month. The Marketplace will send the tax credit directly to your insurance company, so you’ll pay less each month. This is called taking an "advance payment of the premium tax credit."
If you're worried about having to pay back advance payments of the premium tax credit, you can decide to use less or none of the tax credit toward your premium each month.
How do I change the amount of the premium tax credit I use?
When your household size or income changes, so does your premium tax credit
If your income changes or if you add or lose household members, your premium tax credit will probably change.
It’s important to report income and household changes to the Marketplace right away.
- If your income goes up or you lose a household member: You’ll probably qualify for less premium tax credit. You may want to use less of the premium tax credit each month so you don't use more tax credit than you qualify for.
- If your income goes down or you add a household member: You’ll probably qualify for more premium tax credit. You may want to use more of the premium tax credit to lower your monthly premium.
If at the end of the year you’ve used more advance payments of the premium tax credit than you qualify for, you'll have to pay the difference back when you file your federal taxes. This is called “reconciling” the advance payments of the premium tax credit and the actual premium tax credit you qualify for based on your final income for the year.
- Learn how to update your income.
- Learn more about the premium tax credit from the Internal Revenue Service.
More answers: The premium tax credit
- My eligibility results say I’m also eligible for "cost-sharing reductions." What does that mean?
In addition to the premium tax credit, you qualify for savings on out-of-pocket costs, like deductibles and copayments. But you get these additional savings only if you have a plan in the Silver category. Learn about cost-sharing reductions.
- What if my income is too high for the premium tax credit?
You can still use the Marketplace to get a plan without the premium tax credit. You can also buy a plan outside the Marketplace where you may find more options.
Discover ways to get coverage if you don't qualify for the premium tax credit.
- Can I appeal a decision about whether I qualify for the premium tax credit?
If you think we made a mistake when you get your eligibility results, you have the right to appeal.