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Advance premium tax credit (APTC)

A tax credit you can take in advance to lower your monthly health insurance payment (or โ€œpremiumโ€). When you apply for coverage in the Health Insurance Marketplaceยฎ, you estimate your expected income for the year. If you qualify for a premium tax credit based on your estimate, you can use any amount of the credit in advance to lower your premium.
  • If at the end of the year youโ€™ve taken more premium tax credit in advance than youโ€™re due based on your final income, youโ€™ll have to pay back the excess when you file your federal tax return.
  • If youโ€™ve taken less than you qualify for, youโ€™ll get the difference back.