Health care coverage can be a heavy burden for those who have a tight budget. Luckily, the IRS has allowed for a premium tax credit for those who have moderate incomes and need help paying for health care coverage.
To be eligible for the premium tax credit, the IRS says you must:
- 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 sufficiently generous employer-sponsored coverage
To read more on the Premium Tax Credit, visit the IRS’ website.
If you don’t have health insurance coverage in 2014 or you experience a gap in coverage for an extended period of time, you might have to pay a fee when you file your taxes in 2015. Learn more about the individual shared responsibility payment and how to avoid it here.
