Premium Tax Credit

The Premium Tax Credit (PTC) is a government subsidy designed to help people afford health insurance purchased through the Health Insurance Marketplace. It reduces the monthly premium costs based on your income and household size, making coverage more affordable for those with lower to moderate incomes. When you apply for health insurance, your eligibility and the amount of credit are calculated upfront. At tax time, if you received more in advance than your actual subsidy, you may need to repay some or all of the excess. The goal is to encourage health coverage by easing cost burdens for eligible individuals.