Under the Affordable Care Act (ACA), the federal government subsidizes the cost of health insurance for individuals with household incomes up to 400 percent of the federal poverty level (currently $97,000 for a family of 4). Most qualifying individuals choose to receive these subsidies as “advance tax credit payments,” which the government pays directly to your health insurance company on a monthly basis and result in you paying lower monthly insurance premiums.
If you received advance tax credit payments, or would like to claim the credits on your taxes, you must file a tax return to the Internal Revenue Service (IRS) even if you do not owe any taxes. You should have received a Form 1095-A from the Marketplace (or health insurance exchange) showing the amount of payments made on your behalf. With your tax return, you must use Form 8962, Premium Tax Credit (PTC), to reconcile the amount of advance payments made on your behalf with the amount you are entitled. There are additional instructions available online for completing the PTC, Form 8962.
Please note, if you fail to file a tax return, you will be ineligible for premium subsidies in future years even if you otherwise qualify.
For more information, consult the IRS Website.