Can you qualify for premium tax credit if your tax liability is zero?

The premium tax credit is refundable, so even if you have little or no income tax liability you still may benefit. Eligible taxpayers may choose to have the Health Insurance Marketplace make advance payments of the premium tax credit directly to their health insurance company to help cover the cost of monthly premiums.

How much do you have to earn to qualify for premium tax credit?

Premium tax credits are available to people who buy Marketplace coverage and whose income is at least as high as the federal poverty level. For an individual, that means an income of at least $12,880 in 2022. For a family of four, that means an income of at least $26,500 in 2022.

What is modified adjusted gross income for Form 8962?

For purposes of the PTC, modified AGI is the AGI on your tax return plus certain income that is not subject to tax (foreign earned income, tax-exempt interest, and the portion of social security benefits that is not taxable).

Do you have to repay premium tax credit for 2021?

For the 2021 tax year, you must repay the difference between the amount of premium tax credit you received and the amount you were eligible for. There are also dollar caps on the amount of repayment if your income is below 4 times the poverty level.

How do I claim premium tax credit?

Use the information on Form 1095-A to claim the credit or reconcile advance credit payments on Form 8962, Premium Tax Credit. File Form 8962 with your Form 1040, Form 1040-SR or Form 1040-NR.

Is the premium tax credit waived for 2021?

Tax Year 2020: Requirement to repay excess advance payments of the Premium Tax Credit is suspended. The American Rescue Plan Act of 2021, enacted on March 11, 2021, suspended the requirement to repay excess advance payments of the premium tax credit (excess APTC) for tax year 2020.

What line is modified adjusted gross income?

MAGI when using Form 1040A – Drake17 and prior. If you file Form 1040A, your MAGI is the AGI on line 22 of that form.

How do I lower my AGI?

Reduce Your AGI Income & Taxable Income Savings

1. Contribute to a Health Savings Account.
2. Bundle Medical Expenses.
3. Sell Assets to Capitalize on the Capital Loss Deduction.
4. Make Charitable Contributions.
5. Make Education Savings Plan Contributions for State-Level Deductions.
6. Prepay Your Mortgage Interest and/or Property Taxes.