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IRS.gov Website
Publication 17
taxmap/pub17/p17-184.htm#en_us_publink100019155

Chapter 37
Premium Tax Credit (PTC)(p242)


Reminders(p242)


taxmap/pub17/p17-184.htm#en_us_publink100022973
Report changes in circumstances.(p242)
If advance payments of the premium tax credit (APTC) are made during the year for you or another individual in your tax family (described later) and you have certain changes in circumstances (see the examples below), it is important that you promptly report them to the Marketplace where you enrolled in the qualified health plan (described later). Reporting changes in circumstances promptly will allow the Marketplace to adjust your APTC to more accurately reflect the premium tax credit (PTC) you are estimated to be able to take on your tax return. Adjusting your APTC during the year can help you avoid owing tax when you file your tax return. Changes that you should report to the Marketplace include the following.
  • Changes in household income.
  • Moving to a different address.
  • Gaining or losing eligibility for other health care coverage.
  • Gaining, losing, or other changes to employment.
  • Birth or adoption.
  • Marriage or divorce.
  • Other changes affecting the composition of your tax family.
taxmap/pub17/p17-184.htm#en_us_publink100016958
You may be able to take the PTC for health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace (also known as an Exchange). This includes a qualified health plan purchased on healthcare.gov.
This chapter provides an overview of the following.

taxmap/pub17/p17-184.htm#TXMP3dae7134

Useful items

You may want to see:


Publication
 974 Premium Tax Credit (PTC)
Form (and Instructions)
 1095-A: Health Insurance Marketplace Statement
 8962: Premium Tax Credit (PTC)
taxmap/pub17/p17-184.htm#en_us_publink1000174905

What is the Premium Tax Credit (PTC)?(p242)

rule
taxmap/pub17/p17-184.htm#en_us_publink100022974

Premium tax credit (PTC).(p242)

rule
The PTC is a tax credit for certain people who enroll, or whose family member enrolls, in a qualified health plan offered through a Marketplace. The credit provides financial assistance to pay the premiums by reducing the amount of tax you owe, giving you a refund, or increasing your refund amount. You must file Form 8962 to compute and take the PTC on your tax return.
taxmap/pub17/p17-184.htm#en_us_publink100022975

Advance payments of the premium tax credit (APTC).(p242)

rule
APTC is a payment made to your insurance provider for coverage during the year that pays for part or all of the premiums for the coverage of you or another individual in your tax family. Your APTC eligibility is based on the Marketplace’s estimate of the PTC you will be able to take on your tax return. If APTC was paid for you or another individual in your tax family, you must file Form 8962 to reconcile (compare) the APTC with your PTC. If the APTC is more than your PTC, you have excess APTC and you must repay the excess, subject to certain limitations (provided in Table 5 in the Instructions for Form 8962). See Alternative calculation for year of marriage next for a special rule that may reduce your excess APTC if you got married in 2014. If your PTC is more than the APTC, the difference will reduce your tax payment or increase your refund.
The amount of APTC paid may be different from the amount of PTC you can take on your tax return. This difference may occur if the information provided to the Marketplace when you enrolled in a qualified health plan changed and you did not promptly report the change to the Marketplace. See Report changes in circumstances, earlier, for changes that can affect the amount of your PTC.
taxmap/pub17/p17-184.htm#en_us_publink100022976
Alternative calculation for year of marriage.(p242)
If you got married in 2014 and owe excess APTC using the general rules for calculating your PTC, you may be able to reduce your excess APTC repayment using an alternative calculation for your pre-marriage months. You will determine your eligibility using the Instructions for Form 8962 and compute the alternative calculation using Pub. 974.