Everything you need to know about the healthcare tax credit

Everything you need to know about the healthcare tax credit

Health insurance can be expensive. But thanks to Obamacare, people who otherwise can’t get affordable coverage from their employer can buy insurance through an exchange and take advantage of the premium tax credit (PTC) to lower premiums. The PTC is about to celebrate its 10th anniversary, and it has grown since its inception. The recently passed Inflation Reduction Act preserved a 2021 and 2022 expansion of the PTC for three years, through 2025, just in time for open enrollment, which begins November 1. Not only will more people continue to qualify for the PTC, but larger credits remain in place for many.

Who can benefit from a health loan?

Prior to 2021, the PTC was available to people with household incomes between 100% and 400% of the poverty line who purchased health coverage through an exchange. If you enroll for 2023, these income levels range from $13,950 to $55,800 for single people and $27,750 to $111,000 for a family of four (the figures are higher for residents of Alaska and Hawaii). From 2021 to 2025, people with income above 400% of the poverty line who sign up for coverage through an exchange also get PTCs to the extent that their cost exceeds 8.5% of income .

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