24 Sep / Health Coverage Tax Credit
What is the Premium Tax Credit
As part of the provisions of the Affordable Care Act some taxpayers will become eligible for the Premium Tax Credit when filing their 2014 individual income tax return. This is a refundable tax credit that is intended to offset some of the cost of health insurance for certain taxpayers. The tax credit is intended to may health insurance more affordable.
Three Rules to Quality for Health Coverage Tax Credit
The credit is available for those individuals who meet certain criteria. First, the taxpayer must have purchased their insurance through the Health Insurance Marketplace. Taxpayers must have purchased their policy prior to March 31, 2014 in order to be eligible for the credit on their 2014 income tax return. Secondly a taxpayer with a household of four must have income for 2014 between $23,550 and $94,200. Finally, the taxpayer cannot be eligible for medicare, medicaid, or an employer sponsored plan.
How do I Receive the Credit
The credit can be received in two ways. First the taxpayer can choose to have the credit applied directly to their premiums. The taxpayer also apply for the credit when filing their 2014 individual income tax return.