Premium Tax Credit (PTC) – 2025 Overview
The Premium Tax Credit helps eligible individuals and families afford health insurance purchased through the ACA Marketplace. Enhanced subsidies remain in effect through 2025 under the Inflation Reduction Act, but are currently set to expire after December 31, 2025, unless extended by Congress.
Who Qualifies?
To receive the credit in 2025, you must:
- Have household income at or above 100% of the Federal Poverty Level (FPL)
- Not be eligible for other qualifying coverage (e.g., employer-sponsored insurance, Medicare)
- File a federal income tax return and reconcile advance payments on Form 8962
- Enroll in coverage through the Marketplace
Income Guidelines (2025 Coverage Based on 2024 FPL)
|
Household Size |
100% FPL |
400% FPL |
|---|---|---|
|
1 |
$15,060 |
$60,240 |
|
2 |
$20,440 |
$81,760 |
|
4 |
$31,200 |
$124,800 |
Note: The 400% cap has been waived through 2025—households above this level may still qualify if premiums exceed 8.5% of income.
What Clients Need to Know
- If you received Marketplace insurance in 2025, you will be issued Form 1095-A in January 2026
- This form is essential for reconciling the Premium Tax Credit on your tax return
- You must bring Form 1095-A to our office for accurate preparation of your 2025 tax return
Note: The 400% cap has been waived through 2025—households above this level may still qualify if premiums exceed 8.5% of income.