Affordable Care Act Premium Tax Credit

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:

  1. Get health insurance coverage through the Health Insurance Marketplace
  2. Have a household income between one and four times the federal poverty line
  3. Not be eligible for other coverage, including Medicare, Medicaid, or sufficient employer-sponsored coverage

Be sure to read more on the premium tax credit. There are also great resources on all Affordable Care Act tax provisions here.

If you didn’t have health insurance coverage in 2014 or you experienced a gap in coverage for an extended period of time, you might have to pay a fee when you file your taxes in 2015. Check out our blog “ACA Individual Shared Responsibility” for more information.

Still have questions? We here at Nakata Consulting are always here to help. Please contact us at any time.