Health insurance premiums can be expensive, but fortunately there is a tax credit that can help offset the costs for moderate family income. To claim the premium tax credit, three requirements must be met: health insurance coverage must be obtained through the health insurance market. You can select a plan during the open registration period from 15 November 2018 to 15 December 2018.
You can not qualify for Medicare, Medicaid or any other coverage, including employer coverage, which covers a substantial portion of your external costs. When you register for coverage through the market, you can be informed that you are potentially eligible for the premium tax credit. If this happens, you can choose two options from. You can either choose to have the estimated credit amount directly applied to the insurance company, which will reduce your monthly costs instantly throughout 2018, or you can wait for your 2018 tax return and receive the credit in your 2018 return. If you have chosen the latter option, your tax requirement may change. It can increase or decrease your reimbursement. If you apply the credit to your monthly premiums, any changes in your income or family status can change your eligible credit amount. If the credit you receive does not match the figures in the tax return for 2018, you are responsible for any excess amounts paid. Instead, you can get a refund if you have overpaid. Therefore, it is important that you inform the market about all changes in income and family size during the 2018 tax year, so that you receive the appropriate credit.