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...]
Affordable Care Act Tax Exemptions
As of 2014, if you do not have health insurance coverage or have a gap in coverage, you will have to either pay an individual shared responsibility fee or file for an exemption when you file your taxes in 2015. Wondering how to make the right choices for your health care tax provisions? Here are some basics to help you determine if you qualify for an Affordable Care Act tax exemption. According to the IRS, people who qualify include those who: Do not have access to affordable coverage Have a gap of less than three consecutive months without coverage Qualify for one of several other exemptions, including: having a hardship that prevents you from obtaining coverage, … [Read more...]
Affordable Care Act Premium Tax Credit
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 … [Read more...]
Affordable Care Act Tax Exemptions
If you do not have health insurance coverage or have a gap in coverage in 2014, you will have to either file for an exemption or pay an individual shared responsibility fee when you file your taxes in 2015. According to the IRS, people who qualify for an Affordable Care Act tax exemption include those who: Do not have access to affordable coverage Have a gap of less than three consecutive months without coverage Qualify for one of several other exemptions, including having a hardship that prevents you from obtaining coverage, or belonging to a group explicitly exempt from the requirement The IRS also created a specific hardship exemption for those who purchased insurance … [Read more...]
Affordable Care Act Individual Shared Responsibility Payment
With the implementation of the Affordable Care Act, also known as “ObamaCare,” health care coverage is now required. If you do not have coverage, the IRS can charge you with an individual shared responsibility payment when you file your taxes in 2015. There are 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 According to the IRS, the amount you owe will be based on the greater of: 1 percent of your household income that is above the tax return filing … [Read more...]