A premium tax credit is a valuable benefit that can reduce your monthly health insurance premium when you enroll in a plan through the Health Insurance Marketplace®. This tax credit is calculated based on the income and household details you provide in your Marketplace application.
Federal Poverty Levels (FPLs) & Premium Tax Credit Eligibility:
- Income between 100% and 400% FPL: If your income falls within this range, you qualify for premium tax credits that lower your health insurance premium. If your income is at or below 150% FPL, you may even qualify for a Special Enrollment Period to enroll or adjust coverage.
- Income above 400% FPL: Even with an income above 400% FPL, you may still be eligible for premium tax credits, making coverage more affordable.
You can choose to use all, some, or none of your premium tax credit in advance to reduce your monthly premium. However, if you use more credits than you qualify for based on your final yearly income, you’ll need to repay the difference when filing your federal tax return. If you use less, you’ll get the difference back as a refundable credit when you file.
To take advantage of the premium tax credit, you must enroll in an ACA plan from the Health Insurance Marketplace®. Let Aura Insure guide you in finding the right plan and making the most of this financial benefit today!
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