Article from IRS.GOV

https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics

 

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. To get this credit, you must meet certain requirements and file a tax return with Form 8962, Premium Tax Credit (PTC).

2021 and 2022 PTC Eligibility. For tax years 2021 and 2022, the American Rescue Plan Act of 2021 (ARPA) temporarily expanded eligibility for the premium tax credit by eliminating the rule that a taxpayer with household income above 400% of the federal poverty line cannot qualify for a premium tax credit.

2021 Unemployment Compensation. If you, or your spouse (if filing a joint return), received, or were approved to receive, unemployment compensation for any week beginning during 2021, the amount of your household income is considered to be no greater than 133% of the federal poverty line for your family size and you are considered to have met the household income requirements for eligibility for a premium tax credit. Keep any supporting documentation related to receiving or the approval to receive unemployment compensation with your tax return records.

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

  • Have household income that falls within a certain range.
    • If you, or your spouse (if filing a joint return), received, or is approved to receive, unemployment compensation for any week beginning during 2021, your household income is considered to fall within this range.
  • Do not file a tax return using the filing status of Married Filing Separately.
    • There is an exception to this rule that allows certain victims of domestic abuse and spousal abandonment to claim the credit using Married Filing Separately; for more information, see the Premium Tax Credit questions and answers.
  • Cannot be claimed as a dependent by another person.
  • Meet these additional requirements: In the same month, you or a family member:
    • Have health insurance coverage through a Health Insurance Marketplace for which the share of the premium not covered by advance credit payments is paid by the due date of your return.
    • 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.

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

When you enroll, the Marketplace will determine if you are eligible for advance payments of the premium tax credit, also called advance credit payments or APTC. Advance credit payments are amounts paid to your insurance company on your behalf to lower the out-of-pocket cost for your health insurance premiums.