The National Directory of Certified Public Accountants

Ask A CPA - ObamaCare & Form 1040

Premium Tax Credit

You may be eligible to claim the premium tax credit on your 2016 tax credit if you, your spouse, or a dependent enrolled in health insurance through a Health Insurance Marketplace and your household income falls within specific criteria. The credit provides financial assistance to pay the premiums by reducing the amount you owe or increasing your refund amount. If the marketplace overestimated your income when they calculated your advance payment then you will probably receive a refund. If the marketplace underestimated your income then you will have to repay a portion of the advance payment. The premium tax credit will be reported on IRS Form 8962. Both the credit or additional tax due transfer to Form 1040.

If you need professional help with "ObamaCare & Form 1040" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.