Do I Qualify for Advance Premium Tax Credit
Refer to the instructions on Form 8962, Premium Tax Credit, for information on federal poverty guidelines for claiming the premium tax credit. In addition, to be eligible for premium tax credits, individuals must not be eligible for public coverage — including Medicaid, children`s health insurance, Medicare, or military coverage — and may not have access to health insurance through an employer. (There is an exception in cases where the employer-sponsored plan is prohibitive because the employee`s share of the premium in 2022 exceeds 9.61% of the employee`s income. There is also an exception in cases where the employer`s plan does not provide minimum coverage.) In addition to your income, other factors affect the loan amount, including: Premium tax credits are available to U.S. citizens and legally present immigrants who purchase coverage in the market and have an income of at least 100% of the federal poverty line. Premium tax credits are also available for legally residing immigrants with incomes below 100% of the poverty line who are not eligible for Medicaid due to their immigration status. (In general, immigrants must legally reside in the United States for five years before they qualify for Medicaid.) Premium tax credits are available to individuals who have market coverage and whose income is at least as high as the federal poverty line. Here are four things to remember about how your income affects your premium tax credit: To qualify for the premium tax credit, your household income must be at least 100 – but not more than 400 – of the federal poverty line for your family size, although there are two exceptions for people whose household income is less than 100% of the applicable federal poverty line. Keep in mind that simply meeting the income requirements does not mean that you are eligible for the premium tax credit. You must also meet the other eligibility criteria. If you are married and file your tax return using registration status, you will not be eligible for the premium tax credit unless you are a victim of domestic violence and spousal abandonment and can meet certain criteria. For more details on this facilitation, see the instructions for Form 8962 and Publication 974.
You are not eligible for the premium tax credit for coverage purchased outside the Market. Answer the yes or no questions on our eligibility table or use the « Am I eligible to claim the premium tax credit » interview tool to see if you can qualify for the premium tax credit. If you have already filed a return and have an excess premium tax credit, you do not need to file an amended tax return or take any other action. To find out if you are eligible for the premium tax credit, read the premium tax credit flowchart or the available text. Answering a few yes or no questions will help you determine if you qualify. HHS offers three federal guidelines on poverty: one for residents of the 48 contiguous states and Washington D.C., one for Alaskans, and one for Hawaiians. For the purposes of the premium tax credit, eligibility for a given year is based on the most recent poverty guidelines published on the first day of the annual registration period open for coverage for that year. If you have an excess premium tax credit for 2020, you do not need to report it on your 2020 income tax return or file Form 8962, Premium Tax Credit. Five states supplement market subsidies for their residents. In California, people with incomes of up to 600% of the poverty line may be eligible for additional government bonus grants. In New Jersey, subsidies are increased for residents with incomes of up to 400% of poverty.
In Massachusetts, subsidies are increased for residents with incomes of up to 300% of poverty. Connecticut complements premium and cost-sharing grants for eligible families whose income is between 160% and 175% of the poverty line. Vermont also complements premium and cost-sharing grants. More information can be found on these state markets. For information on the two exemptions for individuals whose household income is less than 100% of the federal poverty line, see the instructions on Form 8962. If you are applying for the 2020 Net Premium Tax Credit, you will need to file Form 8962. For more questions, see Immigrants, Medicare, and Employer-Sponsored Health Coverage. Federal poverty guidelines are sometimes referred to as the « federal poverty line » or FPL.
The Department of Health and Social Services determines the amounts of the federal poverty directive each year. . This Marketplace grant calculator can show you your eligibility for different income amounts and family sizes. In general, a taxpayer who lives separately from his or her spouse in the last six months of the taxation year is considered single if he or she files a separate return, manages a household that also represents half of the taxpayer`s maintenance creditor for more than half of the year, and bears more than half of the household costs in the taxation year. For an individual, this means an income of at least $12,880 in 2022. . While we have made every effort to provide accurate information in these FAQs, people should contact the health insurance market or Medicaid agency in their state to learn more about their specific circumstances. .