Publication 974, released by the IRS in March 2015, is a fairly comprehensive review of the ACA health insurance premium tax credit rules. Its release is long overdue as many Americans have struggled to understand how the Advance Premium Tax Credits (APTC) afforded by the ACA interact with their federal taxes. Publication 974 addresses many different […]
Numerous individuals with income below the ACA threshold to receive tax credits must weigh the consequences of selling assets in order to be eligible for the tax credits to purchase a private plan through a Marketplace exchange like Covered California. The prospect of selling retirement assets early in order to qualify for affordable health […]
Most people are under the impression that if they purchase health insurance through a Marketplace exchange such as Covered California they have to accept all the monthly tax credit offered. Individuals and families don’t have to have any of the tax credit applied to their monthly health insurance premium. Covered California has introduced a new link on consumer’s […]
The IRS has published a taxpayer friendly guide to assist individuals and families with attempting to calculate their Affordable Care Act tax credits. The focus of IRS Publication 5187 Health Care Law: What’s New for Individuals & Families is on the Shared Responsibility Payment (individual mandate penalty) and calculating eligible Premium Tax Credits for 2014. Pub. 5187 is […]
With the release of the draft IRS forms for reporting advance premium tax credits and reconciliation with the household MAGI, health insurance agents might be called upon to know another part of the ACA, the dreaded tax forms. The variety of reporting statements individuals and families may receive from employers and the exchanges will require […]
The IRS has released drafts of the tax forms that will be used to reconcile the amount of Advance Premium Tax Credit (APTC) received from an insurance exchange against how much the individual or family was entitled to based on their modified adjusted gross income. The various components used to determine the APTC (income, household size, dependents, employer sponsored insurance, […]
The IRS issued a mid-year ACA tax credit check up advisory to remind individuals and families to report household changes if they are receiving Advance Premium Tax Credits to lower their monthly health insurance premiums. Most notable is the admonition that if the household income exceeds 400% of the federal poverty lineas reported on their […]
One of the hidden dangers of the Affordable Care Act’s Advance Premium Tax Credit (APTC) provision to lower the cost of health insurance is the possibility of having too much tax credit issued for the tax payer’s final income. If the ACA applicant doesn’t report increases to the household income during the year, which triggers a corresponding decrease in premium assistance, the tax payer will be liable to pay the excess back. Fortunately, there are limits to the repayment of excess APTC based on household income.