An Advanced Premium Tax Credit is a tax credit you can take in advance to lower your monthly health insurance payment (or “premium”). When you apply for coverage in the Health Insurance Marketplace, you estimate your expected income for the year. If you qualify for a premium tax credit based on your estimate, you can use an amount of the credit in advance to lower your premium.
If, at the end of the year, you’ve taken more premium tax credit in advance than you’re due based on your final income (versus your estimated, expected income), you’ll have to pay back the excess when you file your federal tax return.
If you’ve taken less of the premium tax credit than you qualify for, you’ll get the difference back.
If you purchased coverage through the Marketplace, and receive a credit to assist you with paying your monthly health insurance premiums, answer ‘Yes’ on the Advanced Premium Tax Credit Page of the Health Insurance section. Complete this information in your account by clicking on Health Insurance section and answer the questions about health insurance and select "Yes" to the question, "Did you purchase health insurance via HealthCare.gov or a State Marketplace?"
Verify your household members and months of coverage. When you get to the screen, "Advanced Premium Tax Credit (1095-A)", answer "Yes" to "Did you receive a 1095-A statement or any Premium Tax Credits to assist you. Once you answer "Yes", additional questions will appear to answer to complete and enter the information from Form 1095-A. This information will allow the program to calculate whether you should receive additional Premium Tax Credit or repay excess Advanced Premium Tax Credit.
Per the IRS: 2021 and 2022 PTC Eligibility. "For tax years 2021 and 2022, the American Rescue Plan Act of 2021 (ARPA) temporarily expanded eligibility for the premium tax credit by eliminating the rule that a taxpayer with household income above 400% of the federal poverty line cannot qualify for a premium tax credit." For more information about the ARPA and the Premium Tax Credit go here.