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premium tax credit

Don’t Let the Premium Tax Credit Hang You Out to Dry

When you are using the Health Insurance Marketplace for your family’s health insurance, you may be receiving assistance with the premiums in the form of a premium tax credit.  This credit is paid to the health insurance provider, allowing your monthly premium to be lower. These premium credits are based upon your residence, income, family size, and eligibility for health insurance via other avenues, such as through a new employer.  If something has changed in your life, you may be receiving too much or too little in premium tax credits.  The IRS recently issued a Health Care Tax Tip designed to help you understand if you need to make a change to the premium credit you’re receiving to avoid unpleasant surprises at tax time.