The IRS will soon mail letters on behalf of the Center for Medicare & Medicaid Services, sharing information about obtaining Marketplace healthcare coverage. More information is available in the IRS Statement about Letter 6534. The premium tax credit (PTC) is a refundable credit that helps eligible individuals and families cover the premiums for your health insurance purchased through the Health Insurance Marketplace.
To get this credit, you must meet certain requirements and file a tax return with Form 8962, Premium Tax Credit (PTC). For tax years 2021 and 2022, Eligibility for the premium tax credit was temporarily expanded by eliminating the rule about household income threshold for the premium tax credit.
You are eligible for the premium tax credit if you meet all of the following requirements
: Household income falls within a certain range. If you received unemployment compensation during 2021, the household income is considered to fall within this range.
: You don’t file a tax return using the filing status of Married Filing Separately.
: You aren’t claimed as a dependent by another person.
: Health insurance coverage was purchased through a Health Insurance Marketplace, and you aren’t eligible for employer-sponsored plan or government program like Medicaid etc.
You might benefit from advance payments of the premium tax credit. Advance credit payments are amounts paid to your insurance company on your behalf to lower the out-of-pocket cost for your health insurance premiums. It is important to report life changes to the Marketplace as they happen throughout the year. Certain changes to your household, income or family size may affect the amount of your premium tax credit. These changes can alter your tax refund, or cause you to owe tax.