IRS updates Premium Tax Credit FAQ
FEBRUARY 2024 ELIGIBILITY UPDATES
You are eligible for the Premium Tax Credit if you meet all of the following requirements:
• Have household income that meets certain requirements (see Q7) or for 2021, you, or your spouse (if filing a joint return),
received, or were approved to receive, unemployment compensation for any week beginning during 2021.
• Do not file a Married Filing Separately tax return ((unless you qualify for a special rule that allows certain victims of
domestic abuse and spousal abandonment to claim the Premium Tax Credit using the Married Filing Separately filing status
• Cannot be claimed as a dependent by another person; and
• In the same month, you, or a family member:
o Enroll in coverage (excluding “catastrophic” coverage) through a Marketplace
o Are not able to get affordable coverage through an eligible employer-sponsored plan that provides minimum value
o Are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE
o Pay the share of premiums not covered by advance credit payments
FEBRUARY 2024 INCOME LIMIT UPDATES
In general, individuals and families may be eligible for the Premium Tax Credit if their household income for the year is at least 100 percent but no more than 400 percent of the federal poverty line for their family size. For tax year 2021, if a taxpayer or the taxpayer’s spouse (if filing a joint return), received, or was approved to receive, unemployment compensation for any week beginning during 2021, the amount of the taxpayer’s household income is considered to be no greater than 133 percent of the federal poverty line for his or her family size and the taxpayer is considered to have met the household income requirements for being allowed a Premium Tax Credit. For tax years 2021 through 2025, Congress temporarily expanded eligibility for the Premium Tax Credit by eliminating the requirement that a taxpayer’s household income may not be more than 400 percent of the federal poverty line. Under this rule, taxpayers with household income of more than 400 percent of the federal poverty line for their family size may be allowed to claim a Premium Tax Credit, if otherwise eligible.
CLICK HERE FOR COMPLETE UPDATE INFORMATION (PDF)
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Credit: irs.gov
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