Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Affordable Care Act

Premium Tax Credit

Enrolled Family Members Coverage

A taxpayer is allowed a premium tax credit only for months that a member of the taxpayer's tax family is:

  • (1) enrolled in a policy offered through the Marketplace and
  • (2) not eligible for minimum essential health coverage (other than individual market coverage).

The family members who meet the above two requirements are the taxpayer's "coverage family."

Example

Cedric is single and has no dependents. When enrolling through the Marketplace in November 2013, Cedric projected his 2014 household income to be $27,925. Cedric enrolled in a qualified health plan. The Marketplace determined the advance credit payments for which he was eligible, but Cedric decided to wait and take all of the benefit of the credit on his 2014 return.

In August 2014, Cedric began a new job and became eligible for employer-sponsored coverage on September 1st. Since Cedric became eligible for employer-sponsored coverage on September 1st, he may be able to claim a premium tax credit only for the months January through August of 2014.

Summary of Benefits and Coverage title and note that says "Plan provides minimum value"