A tax credit you can take in advance to lower your monthly health insurance payment, or premium. Your eligibility for a premium tax credit is based on the projected income and household information you provide on your Pennie application.
If your estimated income falls between 100% and 400% of the federal poverty level for your household size, you may qualify for a premium tax credit, if you otherwise qualify for coverage through Pennie. You can use all, some, or none of your premium tax credit in advance to lower the amount of your premium you pay out-of-pocket every month. You can use a premium tax credit for a plan in any metal category.
If you use more advance payments of the tax credit than you qualify for based on your final yearly income, you must repay the difference when you file your federal income tax return.
If you use less premium tax credit than you qualify for, you'll get the difference as a refundable credit when you file your taxes.
While you can purchase health coverage through other sources, the only way to access premium tax credits is through Pennie.