Advanced premium tax credit

Learn about advanced premium tax credits.

What you need to know

An advance premium tax credit (APTC) is a tax credit that helps lower the costs of monthly health insurance premiums. The APTC can be taken in advance, which gives you a discount on your premium, or at tax time, which increases your tax refund. Whether or not you qualify for an APTC is based on your state of residence, your family size, and your estimated annual income for the upcoming year. If your actual income does not match your estimate, you may owe or be owed money on your tax return.