In: Accounting
The premium tax credit of the Affordable Care Act provides all of the following except: A federal subsidy for taxpayers whose household income is at least 100% but not more than 400% of the federal poverty line. The federal subsidy referred to under the Affordable Care Act is called the premium tax credit (PTC). A taxpayer must purchase insurance through the Health Insurance Marketplace in order to qualify for the subsidy. A taxpayer can receive the premium tax credit in advance and the Marketplace will send it to the insurer to reduce the taxpayer's monthly insurance payments. A taxpayer is never entitled to claim a credit on a tax return for the amount of the premium tax credit not applied to monthly insurance payments.
Premium tax credit of the affordable Care act provides all of the following except :-
A taxpayer must purchase insurance through the health insurance marketplace in order to qualify for the subsidy .
Note that if certain conditions are fulfilled than insurance purchased outside the market place are also eligible for subsidy.