What Is the Advanced Premium Tax Credit (APTC)?
The Advanced Premium Tax Credit (APTC) is a tax credit that lowers the cost of health insurance premiums for individuals and families with low to moderate income. It is part of the Affordable Care Act (ACA).
Key Takeaways
- Definition: A tax credit to help cover health insurance premiums.
- Eligibility: Based on income and household size.
- Purpose: To make health insurance more affordable.
How APTC Works
- Eligibility Determination: Based on projected annual income.
- Application: Applied in advance to lower monthly insurance premiums.
- Reconciliation: Adjusted at year-end based on actual income.
Importance of APTC
APTC makes health insurance accessible and affordable for many families, helping them meet healthcare needs without financial strain.
