All terms
Advanced Premium Tax Credit (APTC)
A federal credit that reduces monthly health insurance premium costs.
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The Advanced Premium Tax Credit is a federal subsidy that reduces the monthly cost of health insurance purchased through the Health Insurance Marketplace. Instead of waiting until tax time, the credit is applied directly to your insurance premiums throughout the year, making coverage more affordable upfront.
In depth
Eligibility for the APTC is based on your estimated household income for the year relative to the federal poverty level. If your income falls between 100% and 400% of the poverty level, you may qualify. Because the credit is based on an estimate, there's a reconciliation process at tax time — if you earned more than estimated, you may have to repay part of the credit; if you earned less, you may receive an additional credit.