Health insurance can be a very expensive expense. For the average American family health insurance premiums are as high as $16,000 annually. Most people don't realize premiums are this high because employers pay a big portion of this bill if a person has employer sponsored health insurance.

However, what do you do if you have to pay this bill on your own? Starting in 2014, if you get your health insurance coverage through the Health Insurance Marketplace, you may qualify for the premium tax credit. The premium tax credit can help make health insurance more affordable for individuals and families with moderate incomes. In some cases, the tax credit can be enough to make monthly health insurance premiums drop down to $0.

The premium tax credit can help make health insurance more affordable for many people, but how do you qualify for the tax credit? There are five requirements to qualify for the tax credit.

you must buy health insurance through the Marketplace;
you are ineligible for coverage through an employer or government plan;
you are within certain income limits;
you do not file a Married Filing Separately tax return and
you cannot be claimed as a dependent by another person.

The amount of credit an individual or family receives depends on the household size and income. Once you qualify for the premium tax credit, you can choose to apply the credit now in order to lower your monthly health insurance premiums or wait to get the tax credit when you file your income tax return.

NAC Insurance can assist you with all your health insurance questions. Learn how to add NAC Insurance as your broker.