Question: When I file my tax return, I usually get refunded the entire amount I paid in for the year or pretty close to it. How is the low-income tax credit going to help me?

Answer: Tax credits (aka premium subsidies) are only available through Covered California. These premium tax credits are immediately applied at the time you are purchasing insurance. You do not have to wait until you have filed your tax return to be reimbursed. When you buy health insurance in the Exchange, your tax credit will be sent directly to the insurance company from which you are purchasing your insurance. You will be responsible for the remaining balance after the subsidy is credited. Tax credits are available even if you have no tax liability.