A Tax Credit to Reduce Health Care Premiums

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A Tax Credit to Reduce Health Care Premiums

By Joy Taylor
From Kiplinger’s Personal Finance
Question: I'm purchasing health care coverage through my state's exchange and wonder if I'll be eligible for a tax credit that reduces my premium. Who qualifies for it?
Answer: The premium tax credit is available to eligible individuals who buy health insurance through an exchange. More people qualify for this tax break these days and bigger credits remain in place for many.
Congress extended 2021 and 2022 expansions of the credit for three more years, through 2025, in time for open enrollment that began in November.

Who is eligible for the credit?

Prior to 2021, the credit was available only to people with incomes ranging from 100 percent to 400 percent of the federal poverty level, who bought health coverage through an exchange and who met other rules. For 2023, individuals with incomes over 400 percent of the poverty level can also get credits to the extent the cost of the benchmark silver health plan exceeds 8.5 percent of income....

Source: A Tax Credit to Reduce Health Care Premiums

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