How does the premium tax credit work?
You may elect to have advance payments of the credit paid directly to your insurance provider – this will help offset premium costs. You would then list the amount of the advance payments and reconcile it with the actual credit amount when you file your 2016 . Or, not to have advance payments and receive the premium assistance provided by the credit all at once when you file your return.
In both cases, you will need to claim the credit on your tax return.
The credit is based on your:
Total annual household income,
Family size (you, your spouse, and dependents),
Filing status,
Address, and
The number and ages of the family members who are enrolled and are not eligible for other health coverage.
