As part of the Affordable Care Act, to help people pay for coverage purchased through the Health Insurance Marketplace, low-to-moderate income families and individuals may qualify for a discount on monthly insurance premiums (know as a premium tax credit), as well as financial assistance on out-of-pocket costs.
When you buy health insurance coverage in the Marketplace during this open enrollment (November 15, 2014 – February 15, 2015), the amount of your tax credit that you qualify for will depend on your 2015 household size and income, which you’ll provide on your Marketplace application. If your 2015 income falls within the following ranges you may be eligible. The lower your income is within these ranges, the bigger your premium tax credit.
- $11,670 to $46,680 for individuals
- $23,850 to $95,400 for a family of 4
You can choose to apply your Premium Tax Credit in a few ways. You can use all of it spread evenly throughout the year (referred to as an advanced premium tax credit), you can use part of it throughout the year, or you can choose to get the whole tax credit when you file your 2015 taxes. If you use less of your tax credit to offset costs during the year, you may end up with a bigger tax refund when you sit down to file your taxes.
To find out if you qualify for a subsidy to help you purchase health insurance, check out our free, easy-to-use Health Care Eligibility Calculator. You can also find out more about how to balance health care costs with your needs here.