The Premium Tax Credit

 

The premium tax credit, or PTC, is a refundable credit that helps eligible individuals and families with low or moderate income afford health insurance purchased through a Health Insurance Marketplace. To get this credit, you must meet certain requirements and file a tax return.

 

Who Qualifies

You are eligible for the premium tax credit if you meet all of the following requirements:

  • Have household income that falls within a certain range.

  • Do not file a Married Filing Separately tax return

    • Unless you meet the criteria in the regulations, which allows certain victims of domestic abuse and spousal abandonment to claim the premium tax credit using the Married Filing Separately

  • Cannot be claimed as a dependent by another person.

  • In the same month – a coverage month – you, or a family member:

    • Enroll in coverage through a Health Insurance Marketplace

    • Are not able to get affordable coverage through an eligible employer-sponsored plan that provides minimum value.

    • Are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP  or TRICARE.

    • Pay the share of premiums not covered by advance credit payments

For more  information about these eligibility requirements see Eligibility for the Premium Tax Credit.

During enrollment through the Marketplace, the Marketplace will determine if you are eligible for advance payments of the premium tax credit, also called advance credit payments.  Advance credit payments are amounts paid directly to your insurance company on your behalf to lower the out of pocket cost for your health insurance premiums.

TAX REGULATIONS

 

Significant Court Cases, Revenue Rulings, Internal Revenue Codes, and Treasury Regulations - Business Expenses

Revenue Ruling 98-25

The costs incurred to replace underground storage tanks containing waste byproducts (including the cost of removing, cleaning, and disposing of the old tanks, and acquiring, installing, and filling the new tanks) are deductible as ordinary and necessary business expenses under section 162 of the Internal Revenue Code.

 

Internal Revenue Code Section 132

Gross income shall not include any fringe benefit which qualifies as a:

                      no-additional -cost service

                      qualified employee discount

                      working condition fringe

                      de minimis fringe

                      qualified transportation fringe

                      qualified moving expense reimbursement

 

 

Internal Revenue Code Section 267
No deduction shall be allowed in respect of any loss from the sale or exchange of property, directly or indirectly, between related parties.