Also known as an Advanced Premium Tax Credit, this tax credit can be used to lower the health insurance premium costs of Washington Healthplanfinder Qualified Health Plans. If you are eligible (Also see What are the eligibility criteria for Health Insurance Premium Tax Credit?) this tax credit gives you the option to either lower the amount of your monthly health insurance premium payment or have a lump sum deduction when you file your annual income tax return. The tax credit is available for individuals and families whose income is between 138-400 percent of the federal poverty level. To check if you qualify, click "Shop for a Health Plan" from the Washington Healthplanfinder homepage.
You can use your Health Insurance Premium Tax Credit in one of the following ways:
Monthly - You can use some or all of your tax credit in advance to lower the cost of your monthly premium.
Pros: Your health plan costs will be less each month.
Cons: You may owe money at tax filing time if your current household income increases.
Annually - You can claim your tax credit on your annual tax return, which will reduce what you owe or increase your refund.
Pros: You have no risk of having to repay at tax filing time.
Cons: Your health plan costs will be more each month.
Your Health Insurance Premium Tax Credit will be sent directly from the Internal Revenue Service (IRS) to the health plan carrier. If you choose to take advantage of this tax credit, you must file taxes. You will use the 1095-A Statment that you receive from Washington Healthplanfinder when you file your taxes.
Last updated: Sept. 2015