A premium tax credit helps lower the cost of your monthly health insurance premium. You can choose to use this tax credit in advance so your monthly premium costs less. This is called an Advance Premium Tax Credit (APTC).
Your APTC is based on the income you and the people in your tax household expect to have during the year. Because it is based on an estimate, the amount may be a little too high or too low.
When you file your federal taxes, the government will figure out the final premium tax credit you qualify for based on your actual income for the year. If you used more tax credit than you qualified for, you may have to pay some back. If you used less than you qualified for, you may get more back on your tax return.
Last Update: August 12, 2026