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Home / Glossary Term / Tax Credit

Tax Credit

A tax credit, or Advance Premium Tax Credit (APTC), can reduce what you pay for health insurance. When you apply for coverage through Maryland Health Connection, you’ll estimate your household income to find out if you qualify for an advance payment of the premium tax credit that lowers your premium (the amount you pay each month to your insurance plan).

You can apply some or all of this tax credit right away, in advance of your tax filing, to lower your monthly insurance premium payment. Maryland Health Connection will send your tax credit directly to your insurance company. Or, you can also take all or some of the credit on your annual tax return instead.

Some small business employers may also qualify for a tax credit for offering health insurance to their employees through Maryland Health Connection.