Tax Tip: What is the Premium Tax Credit?

The premium tax credit (PTC) is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. There are a few requirements to qualify for the PTC, including:

  • Having a household income within a certain range (If you or your spouse received unemployment compensation for any week beginning during 2021, your household income is considered to fall within this range.)
  • Not filing a tax return using the filing status Married Filing Separately
  • Not being claimed as a dependent by another person
  • Have health insurance through the Health Insurance Marketplace
  • Are not able to get affordable coverage through an eligible employer-sponsored plan that provides minimum value.
  • Are not eligible for coverage through a government program


* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov6

Footnotes and Sources

  1., July 7, 2022