You can apply the premium tax credit to any Bronze, Silver, Gold, or Platinum plan offered through the Marketplace . Premium tax credits cannot be applied to Catastrophic plans or to stand-alone dental plans.
If at the end of the year you've taken more premium tax credit in advance than you're due based on your final income, you'll have to pay back the excess when you file your federal tax return . If you've taken less than you qualify for, you'll get the difference back.
The premium tax credit is a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace , also known as the Exchange.
Is Platinum PPO worth it?
Pros. Choose a platinum health plan if the most important factor to you is low out-of-pocket expenses when you use your health insurance. If you expect to use your health insurance a lot, or you aren't bothered by the higher monthly premiums of a platinum plan, a platinum health plan might be a good choice for you.
Another way to avoid having to repay all or part of your premium assistance is to elect to have all or part of your premium assistance sent to you as a tax refund when you file your tax return , instead of paid in advance to your health insurer during the year.
For tax years 2021 and 2022, the American Rescue Plan Act of 2021 (ARPA) temporarily expanded eligibility for the premium tax credit by eliminating the rule that a taxpayer with household income above 400% of the federal poverty line cannot qualify for a premium tax credit.
Should I use all of my tax credit for health insurance?
You can use all, some, or none of your premium tax credit in advance to lower your monthly premium . If you use more advance payments of the tax credit than you qualify for based on your final yearly income, you must repay the difference when you file your federal income tax return.
Is it a good idea to use tax credit for health insurance?
The premium tax credit helps lower-income Americans pay for health insurance but, if you're not careful, you could end up owing money at tax time. Designed to help people who aren't insured through an employer-sponsored plan, the credit is available to anyone making less than 400% of the official federal poverty level.
For the 2021 and 2022 tax years, The American Rescue Plan expanded eligibility for premium tax credits to people at all income levels. If your income for 2022 turns out to be greater than the amount you estimated when you sign up, you may have to repay some or all of the excess credit.
Tax Year 2020: Requirement to repay excess advance payments of the premium tax credit is suspended . ARPA suspended the requirement to repay excess advance payments of the premium tax credit (called excess APTC repayments) for tax year 2020.
How much of my tax credit should I use for health insurance?
Your tax credit would cap the cost of health insurance between 2% and 9.5% of your annual household income , depending on how much money you made relative to the FPL.
If you didn't receive all of the premium tax credit you're entitled to during the year, you can claim the difference when you file your tax return . If you're uncertain about your income for the coming year, remember that you can modify the amount of premium tax credit during the year if your income changes.
Is Platinum coverage better than gold?
These are also known as “extra savings” on out-of-pocket expenses such as deductibles, copayments, and coinsurance. Gold: High monthly premium but low costs when you need care. Platinum: Highest monthly premium and the lowest costs when you need care .
What is after Platinum?
The award levels are Silver (20,000+), Double Silver (40,000+), Gold (75,000+), Double Gold (150,000+), Diamond (200,000+), Platinum (400,000+) and Double Platinum (800,000+).
Which metal plan has the highest out-of-pocket costs?
On average, Bronze plans pay for 60 percent of covered healthcare costs, leaving consumers to pay for 40 percent of their medical expenses. As a result, they have the lowest monthly premiums of all metal tiers. But Bronze plans ultimately leave you with the highest costs when you need care.
The self-employed health insurance deduction and premium tax credit can work together . If you do qualify for both, remember this key rule: Your combined insurance premium deductions and premium credits cannot be more than your total eligible insurance premiums.
What is the Child Tax Credit for 2021?
A more generous Child Tax Credit boosted refunds for some taxpayers. In 2021, the credit increased to $3,600 per child under age six from $2,000 per child in 2020. Parents of children aged 6 to 16 also received an increase in 2021 to $3,000 per child, up from $2,000 in 2020.
The law extends eligibility to taxpayers with household income above 400 percent of the federal poverty line by lowering the upper premium contribution limit to 8.5 percent of household income . All household income levels will experience a boost in premium credits for 2021 and 2022.
