Tax credits, explained in plain English

1. The premium tax credit lowers your monthly price

The premium tax credit is money from the federal government that lowers what you pay each month for a Marketplace plan. The amount depends on your household size and your estimated income for the year you want coverage. In general, the less you make compared with the cost of plans where you live, the more help you get.

You can take it two ways:

• Up front, every month (most people do this): it's paid straight to your insurance company, so your bill is lower.
• At tax time, as part of your federal tax refund.

You can use it on Bronze, Silver, Gold or Platinum Marketplace plans. Depending on your income and where you live, $0 premium plans may be available after tax credits for some households.

2. Extra savings on Silver plans

If your income is on the lower side (generally up to 250% of the federal poverty level), you may also qualify for cost-sharing reductions. They lower what you pay when you use care, like your deductible, copays and out-of-pocket maximum. You only get these extra savings if you pick a Silver plan, which is why the "cheapest" plan isn't always the best deal.

3. It's based on your income estimate, so keep it updated

Because the credit is based on an estimate, it's settled up on your federal tax return. If you end up making more than you estimated, you may owe some or all of the extra credit back. If you make less, you may get more back. Starting with tax year 2026, there's no longer a cap on how much extra credit you may have to repay, so it's more important than ever to report income or household changes to the Marketplace during the year.

4. What changed after 2025

From 2021 through 2025, Congress temporarily made the credits bigger and opened them up to more people, including households with incomes above 400% of the federal poverty level. That temporary expansion ended after 2025.

• For 2026 coverage: the standard rules are back. Households with income above 400% of the federal poverty level generally don't qualify for the premium tax credit, and many people below that line get less help than before.
• For 2027 coverage: unless Congress changes the law, the same standard rules continue. HealthCare.gov posts the 2027 income levels and savings starting November 1, 2026.

5. A few things that can affect your savings

• A job-based plan offer. If you can get affordable coverage through a job (yours or a family member's), you may not qualify for the credit.
• Very low income in Florida. Below 100% of the federal poverty level you generally can't get the credit, and Florida hasn't expanded Medicaid, so some adults fall in between. Call me and I'll help you look at your options.
• Plans outside the Marketplace. Tax credits only apply to Marketplace plans. Private plans sold outside the Marketplace don't come with them, though for some people they can still be a good fit.

How I help

Tell me who needs coverage, your ZIP code and roughly what your household expects to make next year. I'll estimate your savings, show you Silver plans next to the others, and help you through the official application. There's no fee for my help.

See the dates in Open Enrollment 2027.