Publication 974: Premium Tax Credit (PTC)

The Premium Tax Credit (PTC) is a tax credit available to certain individuals and families who enroll in a qualified health plan through the Health Insurance Marketplace. This credit helps eligible individuals and families afford their monthly health insurance premiums by reducing the amount of income tax owed or increasing their tax refund.

Who should use Publication 974?

This publication is designed for individuals and families who:

  • Enrolled in a qualified health plan through the Marketplace in 2023.
  • Received advanced payments of the PTC (APTC) throughout the year to help pay their monthly premiums.
  • Need to understand how the PTC works and how to reconcile their APTC with their actual PTC on their 2023 tax return.

How it Works?

  • You estimate your annual income and projected monthly premiums when you apply for the PTC through the Marketplace.
  • Based on your estimates, the Marketplace determines the amount of the credit you qualify for each month.
  • The credit is typically paid directly to your health insurance company to lower your monthly premium bill.
  • At the end of the year, you reconcile the estimated credit with your actual income and health insurance premiums on your tax return (Form 8962).

As of today, February, 2024, there aren't any significant updates specific to the 2024 edition of Publication 974: Premium Tax Credit (PTC) compared to the 2023 version.