The amount of the premium tax credit is based on the cost of the insurance plan and the individual's or family's income. The amount of the credit is generally the difference between the premium for the insurance plan and a set percentage of the individual's or family's income. For example, if the insurance premium is $5,000 and the set percentage of income is 9.5%, the individual's or family's income must be less than $53,000 for them to receive the credit.
There are a few other factors that can influence the amount of the premium tax credit, such as the number of people in the household, the age of the people in the household, and whether the insurance plan is purchased through the individual marketplace or the federal marketplace.
