Are you planning on claiming the Earned Income Tax Credit (EITC) or the Child Tax…
Luckily, you can get a refundable tax credit just for purchasing health insurance through the Marketplace.
Keep reading to find out how you qualify.
First, individuals and families with low to moderate-income homes can receive a refundable credit (meaning you can receive a refund if it exceeds your tax) to afford their health insurance.
In order to qualify for the PTC, you must meet the following:
To find out more if you’re eligible, click here to use the IRS premium tax credit questionnaire.
When referring to your income threshold, it means that your household income should be at least 100 to 400 percent of the federal poverty line. However, factors like family size, location, and the cost of available insurance coverage are taken into account.
In other words, you will need to be in between the threshold of $25,100 (100%) to $100,400 (400%) for a family of 4. Otherwise, you may be disqualified for this credit.
Above all, taxpayers who receive a 1095-A for their Marketplace Insurance are required to report it to the IRS. With this statement, you will compute your PTC using Form 8962 to claim the credit or reconcile any advance credit payments.
Let’s say you forgot to report your 1095-A. As a result, the IRS can do one of four things:
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