Advance Premium Tax Credits (APTC)
An APTC is a federal tax credit that is used to lower the monthly cost of a Marketplace health plan. Eligibility for an APTC is available for those with a household income between 100 percent to 400 percent of the federal poverty level. The federal poverty level is adjusted annually. The Marketplace will determine your eligibility for an APTC.
If you are eligible and use a Marketplace APTC to lower your monthly premium payment, you will have to “reconcile” the credit when you file your federal taxes. For additional information and a step-by-step guide to reconciling your APTC, visit www.healthcare.gov.