What is the Premium Tax Credit?
The Premium Tax Credit (PTC) is a refundable federal tax credit that lowers what you pay for a Health Insurance Marketplace plan, either applied in advance to reduce your monthly premium or claimed on your tax return via Form 8962, per the IRS (2026).
More on this topic: subsidies and costs
What the government has said, on the record
Here's how a federal official described it, on the record:
“The premium tax credit – also known as PTC – is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace.”
— Internal Revenue Service, Internal Revenue Service (U.S. Department of the Treasury), IRS.gov, The Premium Tax Credit - The Basics (source)
Editor's note: Official IRS definition of the premium tax credit. Eligibility rules and income thresholds are set by law and can change — see IRS.gov and HealthCare.gov for current details.
Who said this
Internal Revenue Service · Internal Revenue Service (U.S. Department of the Treasury)
Also asked as
- What is the ACA tax credit?
- How does the Premium Tax Credit work?
Sources
Last verified: 2026-07-19