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One receive the credit that is larger than the amount they actually pay for their plan so while this is a refundable credit and it’s an advance a poor credit you cannot receive more than you actually pay for your health care coverage so let's take a look at some examples family of four with income up fifty thousand dollars they’re going to purchase a benchmark plan the premium tax credit is generally set based on the benchmark plan the family expected contribution as percentage the family's household income so their household income as a percentage I love the federal poverty limit is two unearned 24 percent may stop for that be expected family contribution will be 7.14 percent up there income this will be published later by the IRS so the expected family contribution would be 3,570 dollars the premium for benchmark plan in this example is nine thousand dollars this task farewell receive a premium tax credit up five thousand porn and thirty dollars and that's going to be nine thousand dollars is what they actually paid for the benchmark plan then they're going to receive 5,000 born30 for the pee on tax credit and they're going to have an actual family contribution Diabacor out 3,570 towards their health care coverage now let's take a look at that exact same scenario but they decide to purchase the less expensive plan.

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