New rules may mean your clients now qualify for Premium Tax Credit


As a result of recent regulatory changes, many families who previously didn’t qualify for the Premium Tax Credit may now be eligible starting in 2023.

Under the new regulations, If the amount of a family’s premium contribution toward their family’s health insurance (for the employee’s spouse and dependents) offered through their employer exceeds 9.12% (2023) of the household income, the plan will not be considered “affordable.” This means if the family obtains health care through a governmental health care exchange (e.g., in California, this is the Covered California program), they may be eligible to receive a Premium Tax Credit to help cover a portion of the costs of their health insurance.

If families qualify for the Premium Tax Credit, they will not be required to contribute more than 8.5% of their household income toward their health insurance (lower amounts for low- to moderate-income households). It’s important for your clients to know about this change now, as many of them are currently reviewing their health insurance options during their employer’s open enrollment period. Remember, many of the big health insurance companies offer plans through these government health exchanges.

All registrants for Spidell’s 2022/23 Federal and California Tax Update webinar and seminar will receive a Premium Tax Credit client letter that we have prepared to inform your clients now about these recent changes.


Sign up for Spidell’s 2022/23 Federal and California Tax Update to spend one day with us and be ready for tax season. Click here for a list of in-person seminar locations.