What is a Premium Tax Credit?

A premium tax credit is a refundable credit that helps eligible individuals and families cover their monthly insurance payment (premium) for health insurance purchased through the Health Insurance Marketplace®.

How Does a Premium Tax Credit Work?

Your tax credit amount is based on your estimated income and household information that you put on your Marketplace application. To get this credit, you must meet certain requirements and file a tax return with Form 8962, Premium Tax Credit (PTC).

 You can apply some or all of this tax credit to your monthly insurance premium payment. The Marketplace will send your tax credit directly to your insurance company, so you’ll pay less each month. This is called taking an advance payment of the premium tax credit, known as the Advance Premium Tax Credit.

Learn more about how to save on your monthly insurance bill with a premium tax credit.

Where Can I Learn More?

Call 1-888-512-2347 to speak with a licensed representative who can answer questions about premium tax credits and help you enroll in a Marketplace plan, like University Community Care Plan. Open enrollment begins November 1! Enroll now for coverage beginning January 1, 2025.