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Health Care Reform:

Health Insurance & Affordable Care Act

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Tax credit

An advanced premium tax credit is a type of financial help available to people with qualifying incomes. It makes health insurance purchased through the Marketplace more affordable. 

When you enroll in a health plan on your state’s Marketplace, you may qualify for an advanced premium tax credit to lower the monthly premium. The amount you may get depends on:

  • Your yearly household income 
  • How many family members you are covering with insurance

If you get a tax credit, you don’t have to wait until you file taxes to get the help. Instead, you can choose to have the government send an advance payment directly to your insurance plan. That will lower the monthly premium.


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