The premium tax credit of the Affordable Care Act provides all of the following except: A federal subsidy for taxpayers whose household income is at least 100% but not more than 400% of the federal poverty line. The federal subsidy referred to under the Affordable Care Act is called the premium tax credit (PTC). A taxpayer must purchase insurance through the Health Insurance Marketplace in order to qualify for the subsidy. A taxpayer can receive the premium tax credit in advance and the Marketplace will send it to the insurer to reduce the taxpayer's monthly insurance payments. A taxpayer is never entitled to claim a credit on a tax return for the amount of the premium tax credit not applied to monthly insurance payments.