Healthcare Acronyms

Advanced Premium Tax Credit

A tax credit, provided by the Affordable Care Act, assisting qualified individuals in paying for health insurance through the Marketplace. Advance payments of the tax credit can be used by qualified individuals at the time of purchase on the Marketplace to lower monthly premium costs. If the amount of advance credit payments you get for the year is less than the tax credit you're due, you'll get the difference as a refundable credit when you file your federal income tax return. If your advance payments for the year are more than the amount of your credit, you must repay the excess advance payments with your tax return. Also sometimes called premium tax credit.