The premium tax credit program uses the federal poverty line to determine the income ranges that qualify you for the credit. You must file a joint return if you're marriedĬhanges in income and family size may affect your eligibility, so report these to the Marketplace to ensure you receive the appropriate tax credit.Another person can't claim you as a dependent on their return.Your income needs to fall within a certain range.You can't be eligible for health care coverage through alternative options such as your employer or the government.You must get your health care coverage through the Marketplace.You must meet all of the following criteria to qualify for the premium tax credit: Eligibility requirements for the premium tax credit It is important to note that for tax year 2020, the American Rescue Plan Act of 2021 suspended the requirement to repay any excess of the advance payments of the Premium Tax Credit when filing your Form 1040. But if you use less of the premium tax credit during the year than you qualified for, you'll receive the difference as a refundable credit on your return. If you use more of your premium tax credit than your final taxable income allows, you'll need to repay the difference when filing your Form 1040 at tax time. You may use some or all of this credit in advance to lower your monthly premium costs, leaving money in your pocket. If your estimated income falls between 100% and 400% of the federal poverty level for a household of your size, you can claim the premium tax credit. The amount of credit you receive depends on your estimated income and your household information, which you'll report on any application you file with the Marketplace. You can also claim the premium tax credit after the fact on your tax return with your actual income. This counts as the advance premium tax credit. You can receive this credit before you file your return by estimating your expected income for the year when applying for coverage in the Marketplace. The premium tax credit is a refundable tax credit that can help lower your insurance premium costs when you enroll in a health plan through the Health Insurance Marketplace. You must meet certain requirements to claim this refundable tax credit and file Form 8962 with your tax return.īut what is Tax Form 8962? This form reports information related to claiming an offset to the cost of purchasing health insurance through the national Health Insurance Marketplace. The premium tax credit came about after the Affordable Care Act in 2009. If you use more of the PTC than your final taxable income allows, you may need to repay the difference when you file your taxes, but if you use less than you qualify for, you may receive the difference as a refundable credit on your return.You'll need to use Tax Form 8962 to determine your eligibility for the PTC.If you’re eligible, you can use the PTC to reduce the premiums you pay during the year for your health insurance, or you can receive the full credit when you file your tax return.If your estimated income falls between 100% and 400% of the federal poverty level for a household of your size, and you purchase health insurance through the national Health Insurance Marketplace, you may be eligible for the Premium Tax Credit (PTC).In order to qualify for assistance from an LITC, generally a taxpayer’s income must be below a certain threshold, and the amount in dispute with the IRS is usually less than $50,000. The LITC assists low income individuals who have a tax dispute with the IRS, and provides education and outreach to individuals who speak English as a second language (ESL). Services are provided for free or for a small fee. Low Income Taxpayer Clinics (LITC) can represent you before the IRS or in court on audits, appeals, tax collection matters, and other tax disputes. To speak to an advocate, call 87 or contact your local office. TAS advocates work with the IRS to get your problems resolved and our services are always free. If you qualify for help, you will be assigned to one advocate who will be with you at every turn. TAS has offices in every state, the District of Columbia, and Puerto Rico. Read more about the kinds of cases TAS works. You may be eligible for help if your IRS problem is causing financial difficulty or you believe an IRS procedure just isn't working as it should. As an independent organization within the IRS, TAS protects taxpayers’ rights under the Taxpayer Bill of Rights, helps taxpayers resolve problems with the IRS, and recommends changes that will prevent the problems from happening in the future. If you are having a tax problem that you haven’t been able to resolve on your own, the Taxpayer Advocate Service (TAS) may be able to help.
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