aTax Day is coming up on April 18th, you won’t want to miss the chance to get Advance Premium Tax Credit (APTC) Where you can save some money through the scheme.
When you sign up for Marketplace Insurance, you can choose to have Marketplace calculate a discretionary credit to be paid to your insurance company to lower what you pay for your APTC. The other option is to choose to get all of the credit benefits when you file your tax return for the year.
What is an advance tax credit?
The Advance Premium Tax Credit or APTC It is a tax credit that you can use to lower the monthly cost of your health insurance. This tax credit is only available when you get your plan through kynect and depends on your income and family size.
How do I qualify for an advance tax credit?
There are several ways you can qualify for APTC. First, if the employer does not provide health insurance, then the employer approved insurance is not affordable, or the employer approved insurance does not provide the minimum value.
The other way to receive APTC is if you don’t get Medicare, Medicaid, VA, or tricare health care benefits.
If you qualify for a premium tax credit at your discretion, you can use any amount of credit up front to lower your premium.
To keep things fair, if you took more tax credit up front than your final income, you’ll pay off the extra amount when you file your tax return. Conversely, if you take less, you will get back the difference so you don’t lose.