How You Can Benefit from the Premium Tax Credit

If you purchase Health Coverage through the Marketplace, you might be eligible for the premium tax credit. The law bases the size of your premium tax credit on a sliding scale. Those who have a lower income get a larger credit to help cover the cost of their insurance. In other words, the higher your income, the lower the amount of your credit.

You will figure your credit on Form 8962, Premium Tax Credit (PTC). You must complete this form to claim the premium tax credit and reconcile any advance credit payments with the premium tax credit you are eligible to claim on your return. Form 1095-A, Health Insurance Marketplace Statement, which you will receive from your Marketplace, provides information you will need when completing Form 8962.

Additionally, the premium tax credit is a refundable tax credit. This means that if the amount of the credit is more than the amount of your tax liability, you will receive the difference as a refund. If you owe no tax, you can get the full amount of the credit as a refund.

However, if you receive advance payments of the credit, you will reconcile the advance payments with the amount of the actual premium tax credit that you calculate on your tax return. If your actual allowable credit on your return is less than your advance credit payments, the difference, subject to certain caps, will be subtracted from your refund or added to your balance due. If your actual allowable credit is more than your advance credit payments, the difference will be added to your refund or subtracted from your balance due.

Remember that filing electronically is the easiest way to file a complete and accurate tax return. Electronic Filing options include free Volunteer Assistance, IRS Free File, commercial software and professional assistance.

For more information, visit the Premium Tax Credit page on IRS.gov/aca.

No Author Biography has been linked to this Article.

Related Articles

May 2, 2021
By Cathy Moran, Esq., (Redwood City, CA) I don't know just what makes Parker such a treat for me, but it delivers multiple thrills to my bankruptcy lawyer heart. It's a stay violation case with a BIG sanctions award. It's a clearly, simply written opinion that lays out the circuit law on multiple issues. It hits hard at HOA hubris....
Members
BEKOFSKE
October 8, 2023
How do you acknowledge such an accomplished man; especially one who is also the consummate gentleman; a man of integrity; a community leader; the sharer of wisdom and knowledge? Of course, you list his impressive biographical accomplishments. But you also think about his influence on you and others in your circle. You reach out to those you know who were...
January 17, 2021
By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) PART VII – CONSUMER CREDITORS' PENALTIES FOR VIOLATIONS OF FORECLOSURE AND OTHER ARTICLE 9 RULES Introduction In this space, we have looked at numerous topics involving the operation of Article 9 of the Uniform Commercial Code (UCC) in bankruptcy; in the current series, we are reviewing Article 9's important rules...
Members
DeCarlo01
October 16, 2022
The facts in In re DeWitt, 2022 WL 4588320 (Bankr. S.D. Ohio 2022), are a bit “unusual”. Debtor filed Chapter 13 to reinstate her mortgage. The mortgage was “non-escrowed” and Debtor was required to pay property taxes directly. Surprisingly, she did not pay her property taxes. The first time, the Lender paid the property taxes but decided not to pursue...
Members
June 28, 2020
By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction In In re Dao,1 Bankruptcy Judge Christopher Klein on May 11 ruled on an issue on which the circuits are split and certiorari is pending.2 Judge Klein agreed with the majority view that, under paragraph 362(c)(3) of the Bankruptcy Code, the automatic stay terminated 30 days after the order...
Members
April 7, 2019
Prior to his appointment as a bankruptcy judge for the District of Utah in September of 2015, Judge Anderson served for seventeen years as the Standing Chapter 13 Trustee for the District of Utah. During this time, he administered over 70,000 Chapter 13 cases. Judge Anderson was elected president of the National Association of Chapter 13 Trustees (NACTT), and he...
November 29, 2020
By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) PART VI – CONSUMER FORECLOSURE PROCEDURES (CONCLUSION) Introduction In the consumer bankruptcy field, trustees and debtors' counsel often are uncomfortable with the rules in Article 9 of the Uniform Commercial Code (UCC). In this series for the NACTT Academy, we have looked at numerous topics involving the interplay of Article...
Members
July 14, 2019
By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) One of the issues raised at the public hearings of the Commission concerned Chapter 7 trustees that would not take prompt action to abandon exempt or partially exempt assets but, would retain assets in the hope that there might be equity in the future to sell the asset for...
Members
December 27, 2020
By Shannon Garrett, Esq. (Topeka, KS) As a Debtor’s bankruptcy practitioner, I was encouraged to see Senator Warren’s proposed reform plan. Bankruptcy is one of the few areas where bipartisan support and action are possible, and being a fan of the current structure, I welcome the reform as a chance to make a good system better. Chapter 7 and Chapter...
August 2, 2020
By The Honorable William Houston Brown (Retired) Chapter 13 debtor had absolute right to dismiss. Facing a contested confirmation hearing, the debtor moved to dismiss the case, and his estranged spouse objected. Concluding that § 1307(b) provides an absolute right to dismiss a case that had not been previously converted, the court posed questions about whether there should be limits...
Members

Looking to Become a Member?

ConsiderChapter13.org offers a forum to advance continuing education of consumer bankruptcy via access to insightful articles, informative webinars, and the latest industry news. Join now to benefit from expert resources and stay informed.

Webinars

These informative sessions are led by industry experts and cover a range of consumer bankruptcy topics.

Member Articles

Written by industry experts, these articles provide in-depth analysis and practical guidance on consumer bankruptcy topics.

Industry News

The Academy is the go-to source for the latest news and analysis in the Chapter 13 bankruptcy industry.

To get started, please let us know which of these best fits your current position: