How Can I Use Advance Premium Tax Credits?

Premium tax credits can be used to cover insurance premiums by making direct payments to your insurance company. In this case, the awarded amount would be used to pay for your premiums in your name. This would be known as Advance Premium Tax Credits (APTC).

​

Alternatively, you could pay your insurance premiums as usual and not use APTC over the course of the year. In this case, you would be able to claim the full amount of the PTC as a tax refund.

If the full amount of awarded PTC is not completely finished when utilizing APTC (in the case the PTC funds are paid directly to your insurance company), then the remaining amount may be claimed as a tax refund while filing your tax return.

 

NOTE: Whatever method you decide to use when making use of your PTC, the claimant is required to file Form 8962 (Premium Tax Credit) on their tax return.