Internal Revenue Service United States Department of the Treasury
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Affordable Care Act

Premium Tax Credit

Who is Allowed a Premium Tax Credit?

In general, taxpayers are allowed a premium tax credit if they meet all of the following:

  • The taxpayer, spouse (if filing a joint return), or dependents were enrolled at some time during the year in one or more qualified health plans offered through the Marketplace.
  • One or more of the individuals listed above were not eligible for other MEC (except coverage through the individual market) during the months they were enrolled in the qualified plan through the Marketplace.
  • The taxpayer is an applicable taxpayer. A taxpayer is an applicable taxpayer if he or she meets the following three requirements:
    • The taxpayer’s income is at least 100% but not more than 400% of the federal poverty line for the taxpayer’s family size (see Publication 4012, ACA tab).
    • If married, the taxpayer files a joint return with his or her spouse (unless the taxpayer is considered unmarried for Head of Household filing status, or meets the criteria in Notice 2014-23 or T.D. 9683, which allows certain victims of domestic abuse or spousal abandonment to claim the premium tax credit using the MFS filing status for the 2014 calendar year). See Form 8962 instructions for more details about these exceptions.
    • The taxpayer cannot be claimed as a dependent by another person.

Eligible taxpayers could have the credit paid in advance to their insurance company or could receive the benefit of the full amount of the premium tax credit on their federal tax return. Those who chose to have advanced credit payments must file a federal tax return even if they are not required to file a return.

Taxpayers with household income below 100% of the federal poverty line for their family size may be eligible for the premium tax credit as long as at least one of the taxpayer, spouse, or dependents who enrolled in a qualified health plan is not a U.S. citizen, but is lawfully present in the U.S. and not eligible for Medicaid because of immigration status, and the taxpayer would otherwise qualify to be an applicable taxpayer.

4012 ACA Tab chart
Form 8962

4012 ACA Tab chart

Form 8962