Make Less Than $98,400? The Government Might Pay for Your Health Insurance
Americans spend a staggeringly large percentage of their income on healthcare-related expenses, including health insurance. Luckily, if you meet certain requirements, the federal government will pay for part, or even all, of your premiums.
The premium tax credit is the government's way of subsidizing your health insurance. In order to claim this credit, you must:
There are two different ways to get the premium tax credit. First, you can get advance payments on the credit at the time you enroll in your health insurance plan for the year. If you choose this approach, you won't get the money directly; instead, your premiums will be lowered by the amount of your tax credit and the IRS will send this money to the insurance company to reimburse them for the difference. Second, you can wait to claim the credit until you file your tax return for the year, in which case you apply it to your return like any other tax credit. This is the best approach if you're not sure exactly what your income will be for the year (and therefore don't know exactly how much of a credit you're eligible for). To claim the premium tax credit on your return, you'll need to fill out Form 8962 to calculate the amount of the credit.
Source: Fool.com
