Which of the following would likely increase a taxpayer’s eligibility for a Premium Tax Credit?

The Premium Tax Credit is designed to help eligible individuals afford health insurance purchased through the Health Insurance Marketplace. This credit is determined by various factors, including household income and size.

Choosing to opt into advance credit payments means that a taxpayer is deciding to receive the tax credit upfront, which effectively increases their affordability for health insurance premiums right away. This is especially helpful for individuals who might struggle to pay their premiums at the outset but are eligible for a tax credit based on their income level and household size. By opting into these advance payments, the taxpayer can reduce their out-of-pocket expenses for health insurance.

In contrast, divorce typically alters household size and may affect income levels, potentially lowering eligibility for the credit. Marriage often increases household size but can complicate situations depending on combined income, which may not necessarily enhance eligibility. Lastly, increased income typically leads to a reduction in the amount of credit a taxpayer can claim, as eligibility is phased out at higher income levels. Therefore, opting into advance credit payments directly relates to an increase in access to the Premium Tax Credit, while the other factors can result in a more complex interplay that may not improve eligibility.