With the implementation of the Affordable Care Act, also known as “ObamaCare,” health care coverage is now required. This can be a heavy burden when you’re on a tight budget. Luckily, the IRS has allowed for a premium tax credit for those who have moderate incomes and need help paying for their health care coverage. According to the IRS, you generally have to meet these three rules to be eligible for the premium tax credit: Get health insurance coverage through the Health Insurance Marketplace Have a household income between one and four times the federal poverty line Not be eligible for other coverage, including Medicare, Medicaid, or sufficient employer-sponsored coverage Be … [Read more...]
Archives for April 2015
Affordable Care Act Individual Shared Responsibility Payment
Health care coverage is now required under the Affordable Care Act, also known as “Obamacare.” If you do not have coverage, the IRS can charge you with an individual shared responsibility payment when you file your taxes in 2015. In their article on the subject, the IRS lists three reasons why you would have to make a payment: You have not signed up for a qualifying form of health insurance coverage. You had a gap in coverage in 2014. (If it was less than 3 consecutive months, you might qualify for an exemption.) You didn’t qualify for an exemption. The amount you owe will be based on the greater of: 1% of your household income that is above the tax return filing threshold … [Read more...]