Premium Tax Credit

A premium tax credit is available for health insurance coverage purchased from a State Exchange (Marketplace). The State Exchange must determine whether individuals are eligible, and the tax credit is paid on an advance basis to the health insurance provider. Individuals are eligible for the tax credit if: (1) their household income is at least 100% and not more than 400% of the Federal Poverty Line (FPL); (2) they are not eligible for governmental coverage (such as Medicare, Medicaid and CHIP); and (3) they are not eligible for employer coverage that is adequate and affordable. Household income is based on the income of the taxpayer and all other individuals in the taxpayer's household who are required to file a tax return.


Neither American Fidelity Assurance Company nor American Fidelity Administrative Services provides tax or legal advice and, given the complexity of these laws, we always recommend working with your legal counsel on how the laws impact your specific situation. 

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