2019 Health Care Premium Tax Credit Calculator

Expert Guide to the 2019 Health Care Premium Tax Credit Calculator

Introduction & Importance

The 2019 Health Care Premium Tax Credit Calculator is an essential tool for individuals and families to estimate their eligibility and the amount of the tax credit they may receive to help afford health insurance premiums. Understanding this credit can significantly impact your financial planning and health care decisions.

How to Use This Calculator

1. Enter your annual household income.
2. Select your age.
3. Enter the number of people in your household.
4. Click the “Calculate” button.

Formula & Methodology

The tax credit is calculated based on your household income, age, and the number of people in your household. The formula used is:

Tax Credit = (APTC * (1 - (Income / FPL) ^ 0.05)) - (Enrollment Fee * (Income / FPL))

Where:

• APTC is the average premium tax credit for a Silver plan in your area.
• Income is your household income.
• FPL is the federal poverty level for your household size.
• Enrollment Fee is the fee for enrolling in a Marketplace plan.

Real-World Examples

Example 1

A 35-year-old individual with an annual income of $25,000 and no dependents would receive a tax credit of approximately $3,000.

Example 2

A family of four with an annual income of $60,000 and ages ranging from 25 to 45 would receive a tax credit of approximately $8,000.

Example 3

A 55-year-old individual with an annual income of $40,000 and two dependents would receive a tax credit of approximately $5,000.

Data & Statistics

Federal Poverty Levels for 2019

Household Size	Federal Poverty Level

Average Premium Tax Credits for 2019

State	Average Premium Tax Credit

Expert Tips

• Use the calculator early in the enrollment process to plan your budget.
• Remember that the tax credit is based on your estimated income for the year, so it’s important to update your information if your income changes significantly.
• If you’re unsure about your eligibility or have questions about the calculation, consult with a certified Marketplace navigator or assister.

Interactive FAQ

What if my income changes during the year?

If your income changes significantly during the year, you may need to update your information with the Marketplace to ensure you receive the correct amount of tax credit.

Can I use the tax credit to purchase a plan outside the Marketplace?

No, the premium tax credit can only be used to purchase a plan through the Health Insurance Marketplace.

Learn more about the premium tax credit on HealthCare.gov

View the 2019 Federal Poverty Guidelines from the U.S. Department of Health & Human Services