When you buy health insurance coverage in the Marketplace, you may be able to get a premium tax credit that lowers what you pay in monthly premiums.
The amount of your premium tax credit depends on the estimated household income for 2017 that you put on your Marketplace application.
You can apply some or all of this tax credit to your monthly insurance premium payment. The Marketplace will send your tax credit directly to your insurance company, so you’ll pay less each month. This is called taking an “advance payment of the premium tax credit.”
If your income changes, or if you add or lose members of your household, your premium tax credit will probably change too.
It’s very important to report income and household changes to the Marketplace as soon as possible.
IMPORTANT: If at the end of the year you’ve taken more advance payments of the premium tax credit than you’re eligible for, you may have to pay money back when you file your federal income tax return. This is called “reconciling” the advance payments of the premium tax credit and the actual premium tax credit you qualify for based on your final 2017 income.
You can still use the Marketplace to buy a health plan without a premium tax credit. You can also buy a plan outside the Marketplace, where you may find more options.
If you think we made a mistake when you get your premium tax credit decision in the Marketplace, you have the right to appeal.
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