skip navigation
Search Help
Navigation Help

Tax Map Index

Tax Topic Index

Affordable Care Act
Tax Topic Index

Tax Topics

About Tax Map Website
Publication 17

Who Can Take the PTC?(p242)

You can take the PTC for 2014 if you meet all the conditions under (1) and (2) below.
  1. For at least one month of the year, all of the following were true.
    1. An individual in your tax family was enrolled in a qualified health plan offered through the Marketplace;
    2. The individual was not eligible for minimum essential coverage, other than coverage in the individual market (see Minimum essential coverage, later); and
    3. The portion of the enrollment premiums (discussed under Terms You May Need to Know in the Instructions for Form 8962) for the month for which you are responsible was paid by the due date of your tax return (not including extensions).
  2. You are an applicable taxpayer. To be an applicable taxpayer, you must meet all of the following requirements.
    1. For 2014, your household income is at least 100% but no more than 400% of the Federal poverty line for your family size (provided in Tables 1-1, 1-2, and 1-3, in the Instructions for Form 8962). See the Instructions for Form 8962 for exceptions when household income is below 100% of the Federal poverty line.
    2. No one can claim you as a dependent on their tax return for 2014.
    3. If you were married at the end of 2014, generally you must file a joint return. However, filing a separate return from your spouse will not disqualify you from being an applicable taxpayer if you meet certain requirements described under Married taxpayers in the Instructions for Form 8962.
For more information on taking the PTC and the requirements to be an applicable taxpayer, see the Instructions for Form 8962.

Terms You May Need to Know(p242)


Tax family.(p242)

For purposes of the PTC, your tax family consists of the individuals for whom you claim a personal exemption on your tax return (generally you, your spouse with whom you are filing a joint return, and your dependents). Your personal exemptions are reported on your Form 1040 or Form 1040A, line 6d. Your family size equals the number of individuals in your tax family.

Household income.(p242)

For purposes of the PTC, household income is the modified adjusted gross income (modified AGI) of you and your spouse (if filing a joint return) plus the modified AGI of each individual in your tax family whom you claim as a dependent and who is required to file a tax return because his or her income meets the income tax return filing threshold. Household income does not include the modified AGI for those individuals whom you claim as dependents and who are filing a 2014 return only to claim a refund of withheld income tax or estimated tax. See the Instructions for Form 8962 to determine your household income.

Qualified health plan.(p242)

For purposes of the PTC, a qualified health plan is a health insurance plan or policy purchased through a Marketplace at the Bronze, Silver, Gold, or Platinum level. Plans sold as “catastrophic” coverage and plans purchased through the Small Business Health Options Program (SHOP) do not qualify a taxpayer to take the PTC. A qualified health plan is also referred to as a policy.

Minimum essential coverage.(p243)

Under the health care law, certain health coverage is called minimum essential coverage. Even if you have coverage purchased through the Marketplace, you cannot take the PTC for any individual in your tax family for any month when that individual is eligible for minimum essential coverage, other than coverage in the individual market. Other types of minimum essential coverage include:
Coverage purchased in the individual market outside the Marketplace is minimum essential coverage. Eligibility for this type of coverage does not prevent you from being eligible for PTC for Marketplace coverage, but it does not qualify for PTC.
For more details on minimum essential coverage, see Minimum Essential Coverage in Pub. 974. You can also check for future updates about types of coverage that are recognized as minimum essential coverage.