8854 / How does an eligible taxpayer obtain the premium assistance tax credit?

A taxpayer who receives a premium tax credit is required to file a federal tax return for the year in order to claim the credit. This is true even if the taxpayer would not otherwise be required to file a return because income does not exceed the applicable filing threshold (see Q 8501) for the tax year.²

On this return, the taxpayer must report the amount of premiums paid and any advance premium tax credit payments that have been forwarded to the insurance company on the taxpayer’s behalf. If the taxpayer enrolls in a health insurance plan through the exchanges, the exchange will send the taxpayer a document that shows the amount of the taxpayer’s annual premiums and any advance credit payments by January 31 of the year following the year of coverage.³

1.  See IRS Questions and Answers on the Premium Tax Credit, available at: http://irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premium-tax-credit (last accessed September 28, 2024).

2.  IRS Pub. 5120 (rev. 2/2018).