Wednesday, October 16, 2013

Affordable Care Act: Advance Premium Tax Credit

Worried about the cost of insurance due to the requirements of the Affordable Care Act? Keep in mind, when you get health insurance coverage in the Marketplace, you may be able to get lower costs on monthly premiums. This depends on your income and family size.

The Affordable Care Act provides a new tax credit to help you afford health coverage purchased through the Marketplace. Advance payments of the tax credit can be used right away to lower your monthly premium costs. If you qualify, you may choose how much advance credit payments to apply to your premiums each month, up to a maximum amount. If the amount of advance credit payments you get for the year is less than the tax credit you're due, you'll get the difference as a refundable credit when you file your federal income tax return. If your advance payments for the year are more than the amount of your credit, you must repay the excess advance payments with your tax return. This is also called premium tax credit.

Want to learn more? Take a look at this explanation for lower costs on monthly premiums or watch this easy to understand video.

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