You have to meet certain requirements, and the Marketplace also determines if people are eligible for advance credit payments, which are amounts paid to your insurance company on your behalf to lower the out-of-pocket cost for your health insurance premiums.
Congress authorized temporary enhancements to the tax credits through the American Rescue Plan Act of 2020 to make more low-income and middle-class Americans eligible for those tax credits, and then lawmakers extended the enhanced premium tax credits in 2022 through the Inflation Reduction Act.
The enhanced premium tax credits temporarily expanded eligibility for the premium tax credit by eliminating the rule that a taxpayer with household income above 400% of the federal poverty line cannot qualify for a premium tax credit.
The enhanced premium tax credits are set to expire at the end of the year, and if Congress doesn’t vote on a deal to extend them, Marketplace premiums could more than double, according to a KFF analysis.
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