Contact UsI just received a notice from my health insurance company on the Affordable Care Act (ACA) which calls for taxes to be paid by health care plans. They are stating that the ACA Insurer Fee for 2014 is 2% of premium. The actual percentage will include state tax gross-up, which is the impact based upon each states specific tax rate on insurance companies. It states that the fee is being " worked into our monthly billing health insurance statement". Is this fee tax deductible?
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Tax Professional Answers
Trenna Morris
The Health Coverage Tax Credit (HCTC) is available for you, if you meet the general requirements that will help save you money through out the year by paying 27.5% of your health coverage premiums for you. You must register for this HCTC credit at www.irs.gov/Individuals/HCTC:-The-Monthly-HCTC.
There are two options for this credit: 1) receive 27.5% towards your health care monthly premiums as you continue to pay your monthly premiums through out the year; or 2) you pay 100% of your own health care premiums, then you claim 72.5% of your paid premiums on your Federal tax return. You will receive this credit as a refund or as a credit toward your year-end-taxes (meaning reduce any federal tax liability that you might have).
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578 weeks ago
There are two options for this credit: 1) receive 27.5% towards your health care monthly premiums as you continue to pay your monthly premiums through out the year; or 2) you pay 100% of your own health care premiums, then you claim 72.5% of your paid premiums on your Federal tax return. You will receive this credit as a refund or as a credit toward your year-end-taxes (meaning reduce any federal tax liability that you might have).