If you need help paying health insurance premiums during the year, you can apply to receive the Advance Premium Tax Credit.

You can claim the Advance Premium Tax Credit when you buy insurance coverage through a Health Insurance Marketplace and reconcile it on Form 1040 with Form 8962.

The credit is based on your estimated income for the year, so you can claim it before you actually file your taxes. The Advance Premium Tax Credit is paid directly to the insurance company every month to lower your premium payment amount.

If you received too much Advance Premium Tax Credit in 2020, you won’t have to pay back the excess—and if you’ve already filed your 2020 return and paid back the excess on Line 29 of Form 8962, Premium Tax Credit, you should not file an amended tax return only to get a refund of this amount. The IRS will determine the correct amount and refund it to you.