Health is one of the most essential aspects that people ensure to be secured. However, due to financial issues, it becomes hard for people to avail the needed health care. It is the sole reason why the government of United States passed the affordable care act tax credit for individuals.
What is the Affordable Care Act?
The Affordable Care Act law, also known as health care, is the one that contains both financial assistance and health insurance coverage options. These are options that can be availed by families and individuals. The IRS is the one administering the tax provisions associated with the law.
Basic Facts about the Affordable Care Act Tax Credit for Individuals
Beginning 2014, individuals who obtained their health insurance coverage from the Health Insurance Marketplace may be eligible when it comes to premium tax credit. This affordable care act tax credit for individuals can help those with moderate income in buying health insurance coverage. For them to be eligible in benefiting from the premium tax credit, individuals would need to obtain and pass the requirements. To those who have not yet purchased health insurance coverage from the Marketplace can do that now. The enrollment period is still open until March 31, 2014. This will let them be eligible to benefit from the premium tax credit.
Requirements for the Affordable Care Act Tax Credit for Individuals to be Eligible
Any person can be eligible for the tax credit as long as they meet the requirements. These requirements include purchasing health insurance through the health insurance Marketplace. They must also not be eligible for any coverage through the government or employer plan. Their income must be within income limits. They did not file the Married Filing Separately for their tax return. Lastly, individuals must not be claimed as another person’s dependent.
The Premium Tax Credit
A person gets the chance to be eligible for tax credit after obtaining insurance through the health insurance Marketplace. The person can choose to have the tax credit’s advance payment sent to their insurer directly in 2014. They can also choose to wait in claiming the credit upon filing for the 2015 tax return. If the first option is chosen, the person has to reconcile the made payments on their 2014 tax return. This is the one to be filed in 2015. Those who are already receiving their advance payments do not need to do anything anymore. Something has to be done only if the person has a change in circumstance.
This affordable care act tax credit for individuals is the percentage of the person’s health insurance premium. It is the one being paid by the government upon purchasing the ObamaCare health insurance. This is presented for the reason that any household should not have to expend more than the specified percentage of their income. Another of the eligibility facts for tax credit in 2014 is that an individual’s income must be less than 133%-400% in the stated federal poverty level.
The aim of the Affordable Care Act is to enable those individuals with low income to be able to pay for their health care. Through the affordable care act tax credit for individuals, it is hoped that it would do its purpose well and help these people.