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The Affordable Care Act Gets a Check-Up…

In Accounting & Finances, Business, Insurance & Liability, Taxes on August 29, 2011 by Sufen Wang Tagged: , , , ,

IRS Prescribes Premium Tax Credit Regulations
 
There’s some good news and bad news this month. The good news is that the IRS proposed regulations on August 12 for health care premium tax credits – which means affordable healthcare is one step closer to becoming a reality. The bad news is that the IRS proposed regulations for health care premium tax credits – which means you might be ineligible to receive them.
 

The health insurance premium tax credits were created under the Patient Protection and Affordable Care Act (ACA) of 2010. When the ACA goes into effect in 2014, individuals who are unable to access affordable health insurance through their employers will be able to buy insurance through state-run insurance exchanges. The tax credit is geared toward lower and middle-income individuals who can’t afford to pay their premium costs out-of-pocket.

Of course, calculating the credits will be another task for tax return preparers…..

So who exactly can get the tax credit? The IRS regulations say you must be an applicable taxpayer with a household income between 100 percent and 400 percent of the federal poverty line. That’s about $22,350 to $89,400 for a family of four. Applicable also means you can’t be claimed as a dependent by another taxpayer and if you’re married, you have to file a joint return. The tax credits will average $5,000 per individual.

You also won’t be eligible if you have “minimum essential coverage” available through your employer. Under the ACA, businesses with more than 50 full-time workers over the course of a year will face tax penalties of up to $3,000 per employee if they fail to offer affordable coverage (the regulations help define affordable). Employers must report which employees are not covered by insurance and are thus eligible to participate in health insurance exchanges.

The IRS wants to hear what you think about the proposed regulations! Give them a piece of your mind by October 31:

 http://www.regulations.gov/ 

via e-mail at E-OHPSCA2715.EBSA@dol.gov.

On the Money,
Sufen Wang
Wang Solutions
 

2 Responses to “The Affordable Care Act Gets a Check-Up…”

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