To be eligible for the Premium Tax Credit under the Affordable Care Act, all of the following must apply:
• Your income must be between 100% and 400% of Federal Poverty Line (see below) for a given family size.
• You cannot be claimed as a dependent.
• If married, you must file a joint return (although some exceptions may apply).
• You must be enrolled in a qualified health plan through Marketplace.
• Cannot be eligible for other minimum essential coverage.
• Premiums must be paid.
Under the Affordable Care Act, individuals must fall into one of the following 3 categories: (1) Those who have qualifying health insurance (minimum essential coverage), (2) those who qualify for an exemption from the responsibility to have minimum essential coverage, or (3) those who are required to make the shared responsibility payment (penalty) when they file their federal income tax return.
Those who fall in category 2 are exempt from the requirement to maintain minimum essential coverage and thus will not have to make a shared responsibility payment (penalty) when they file their federal income tax return.
Generally, you may be exempt if you: (a) have no affordable coverage options because the minimum amount you must pay for the annual premiums is more than eight percent of Read More
Under the Affordable Health Care Act (ACA), individuals who purchase health care coverage through an exchange and whose income is under certain amounts will be eligible for tax credits. Form 8962 will be used to enter any advance credits received and amounts entitled to for the current tax year. The net amount (credit entitled to less the advance credit) is then entered on a separate line on the back of Form 1040 or 1040A. Taxpayers who claim the credit cannot file Form 1040 EZ (for AGI less than $100,000 and do not itemize and don’t have any dependents) but must file Form 1040 or 1040A. If you are eligible for the credit, you can choose to:
• Get it now: have some or all of the estimated credit paid in advance directly to your insurance company to lower what you pay out-of-pocket for your monthly premiums. Read More
Consumers eligible for Obamacare health plans could see double-digit price hikes next year in states that fail to draw large numbers of enrolls for 2014, according to insurance industry officials and analysts.
The early estimates come as insurance companies set out to design plans they intend to sell in 2015 through the state-based health insurance marketplaces that are a centerpiece of the Affordable Care Act, President Barack Obama’s signature domestic policy achievement that is widely referred to as Obamacare.
WellPoint Inc, which sells plans on 14 Obamacare exchanges, expects health insurance rates nationwide to be higher. Increases for the Obamacare market that has signed up Read More
The Department of Treasury recently issued final treasury regulations (T.D. 9655 (2/12/14)) governing the implementation of the shared responsibility provisions for employee health care coverage required under I.R.C. § 4980H, as enacted by the Affordable Care Act. Pursuant to the employer shared responsibility provisions, if employers to whom the rules apply do not offer affordable health coverage that provides a minimum level of coverage to their full-time employees and their dependents, the employer may be subject to an employer shared responsibility payment if at least one of its full-time employees receives a premium tax credit for purchasing individual coverage on one of the new Affordable Insurance Exchanges (e.g., Health Insurance Marketplace).
The employer shared responsibility provisions apply to employers that have 50 or more Read More
The 2012 “Affordable Health Care Act” (Obama Care) [The Act] contains many provisions for penalties and additional taxes for businesses that do not provide health care coverage for their employees. Health care coverage is mandated for businesses employing a certain number of “full-time” employees. It also imposes penalties on individuals who do not have health care coverage. Businesses have until January 1, 2015 to comply and individuals until March 31, 2014. There is legislation pending in Congress to extend the individual mandate until January 2015.
This article will discuss the Act’s ramifications, particularly for small businesses, in determining if they are required to cover employees with health insurance and penalties for failure to do so. A Even businesses that provide insurance today may get caught up under Read More