Individuals and households qualify for health care tax credits to help with health insurance premiums based upon their incomes, reports WebMD. To receive premium tax credits, they must purchase health coverage through their state's Health Insurance Marketplace, according to HealthCare.gov.Continue Reading
Individuals and households find out if they are eligible for premium tax credits when they enroll in a health coverage program through their state Health Insurance Marketplace accessed through HealthCare.gov, reports WebMD. Sample income eligibility ranges for 2015 are $11,670 to $46,680 for an individual, $15,730 to $62,920 for a household of two and $23,850 to $95,400 for a household of four. Households with lower incomes receive more credit, while households with higher incomes receive less. Alaska and Hawaii income amounts are slightly different than those in the mainland United States.
Taxpayers can have the IRS send the full amount of the tax credit directly to the insurance company to help pay for premiums, have the IRS send part of the money for insurance premiums and receive the balance in tax refunds, or pay for their insurance premiums themselves and receive the full tax credit as a tax refund, explains WebMD. People who receive insurance through their employers are ineligible for premium tax credits.Learn more about Taxes