The main reason to apply for and use the tax credits offered under the Affordable Health Care for America Act is that it offsets the amount you pay in premiums every month. This lowers your out of pocket expense and allows you to have a higher level of coverage than you would have if you paid for everything out of your current budget.
The tax credits are not like other tax incentives offered by the federal government. Most tax incentives, from childcare credits to interest credits, are only applied after you have filed your taxes for the previous year. This means you have to wait for 12 months before you see any of the credits on expenses you have at the beginning of the year. The affordable health care for America act is designed to give you immediate access to these funds, and allows you to purchase insurance using your credits, instead of waiting an entire year to be reimbursed.
There is the possibility that your tax credits will be more than the premium for the policy you choose. You should know that any credits you do not use to purchase an insurance policy are lost, and will not be refunded on your tax return. This is because the credits are designed to lower the cost of the premiums and are budgeted to be used for that one purpose. For this reason, it is important to calculate your tax credit and purchase your insurance accordingly. If you can get a bronze plan for free, or a silver plan for only a few dollars a month, it may be better for your family to upgrade to the silver plan and use all of the credits you deserve.