Premium Tax Credit is a refundable credit that helps eligible individuals pay for health insurance purchased through the Health Insurance Marketplace. When you enroll in a health insurance plan through the marketplace, you can apply for Advance Payments of the Premium Tax Credit, a financial assistance program that helps individuals lower their monthly health insurance premium provided as a tax credit.
Form 8962 is filed with your federal income tax return for the year to reconcile advance payments with your actual income. A 0.9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status:
- $250,000 for married filing jointly;
- $125,000 for married filing separately; and
- $200,000 for all other taxpayers.
Form 1095-A
You'll also need Form 1095-A from the Marketplace, which provides information about your coverage, premiums, and any advance credit payments. Please let your tax preparer know, and they'll complete this form for you if you file your taxes with Heard.