Advanced Tax Credits are available for individuals & families, as well as small business groups. Group Advanced Tax credits are applied when it comes to starting a group plan through your business. Advanced premium tax credits (APTC) are applied across the board for individuals and families, and also small business groups depending on the situation.
Basically, advanced premium tax credits allow people to receive discounts on their monthly insurance premiums. This will depend upon what your employer offers, what you can pay and other factors to ensure you are getting the fairest price for your health coverage. Some factors that may be taken into consideration include:
- Household Size
- Household Income
- Changes in life, such as:
- Getting married
- Buying a home
- Changing jobs
- Having a baby
- …and more.
When you receive an advanced premium tax credit based on a life change, be sure to report it right away on the health care marketplace website. This will ensure that you get the most out of your options when it comes to having an APTC.
The beauty of receiving an advanced premium tax credit is that you save money on your premium throughout the year. You do not have to wait until you file your taxes at the end of the year to see a difference in your monthly premium. The federal government will pay a portion of your monthly premium not only to make health insurance affordable to you, but also to help you sustain your health insurance premium throughout the year.
Plans are still structured the same, but you will receive a certain tax credit each month to ensure you are able to pay your regular premium. These tax credits can be applied for by anyone, but only certain people will qualify. Be sure to visit www.healthcare.gov, or call 1-(800)-318-2596 for more information if you have doubts. Overall, there are still four plans to choose from. They are referred to as the “metal plans:”
Once you have chosen a plan, you can also choose how much you wish to use of any APTC you qualify for. This will mainly affect your end of the year taxes. If you choose to utilize your entire APTC for each monthly premium price, this will be reflected on your end of the year taxes. It is unlikely that you will owe any money, but you will receive less back. If you decide to pay more each month, you will see a positive difference in your tax refund at the end of the year.
Tax refunds, exemptions or payments will depend on your own personal situation. If ever in doubt, contact a tax professional for advice as to how to best utilize any advanced premium tax credit you may qualify for.
Since so many people are attempting to sign up for health care either through the Marketplace, their employer or through private insurance companies, it may take a while to be approved for Advanced Premium Tax Credits. Not to worry, because regardless of the time it may take to get approved, you will receive credit on for the premiums you have already paid even if it takes a little bit to get approved for an APTC.
Overall, advanced premium tax credits are available to many United States residents, but you must take the time to apply, be patient, and submit any necessary paperwork to be approved. If you have further questions, once again, the best place to receive an answer to a specific question would be to visit www.healthcare.gov, or call 1-(800)-318-2596.