Can the provisions of Affordable Care Act help to pay for health insurance coverage?
Yes! From 1 January 2014, you are usually required to have adequate health insurance or pay a penalty.
The good news is that if your income is within certain limits, you may qualify for a advanced tax credit premiums to help pay for coverage. The credit is paid directly to your insurance company as a subsidy.
How do I know if I am eligible for a tax credit on premiums (subsidy)?
You may be able to get this credit if your employer does not offer health insurance, or if they do, it covers less than 60% of benefits covered, or the premiums would cost you more than 9.5% of your annual household income.
to qualify, you must purchase insurance coverage through "market" your state -. the insurance site
your income must not be too low or too high. You can not get credit if you are eligible for government programs such as Medicare and Medicaid. You are eligible for the credit if your household income is greater than 100% to 400% of the federal poverty level.
To see if you may be eligible for credit, use health care Calculator TaxACT Tax Credit.
How can I claim the credit?
You start with a request for insurance by the health insurance market in your state , also known as an exchange.
You must register before March 31, 2014, receive health insurance through the exchange.
When you apply through an exchange, you answer questions to determine if you qualify for the credit.
What happens if my income is higher or lower than expected?
most of us can not predict exactly how we will do in a year. Make your best estimate, and when you file your 2014 income, the amount is reconciled with the tax credit, you should receive based on your actual income for the year.
If you feel hurt your income, you can receive a larger or smaller tax credit that you were entitled to. If you are entitled to a credit, you will get that money. If you qualify for a smaller or no credit, you may have to repay part or all of the credit.
If you do not like the possibility of having to repay the money at the end of the year, you can pay your entire premium you during the year.
in this way, you will receive your entire credit as a refund when you file your tax return on income, provided that you were entitled to.
Who does not need to obtain health insurance or pay a penalty?
not everyone must buy insurance or pay a penalty. You will not be penalized for not having insurance if your income is sufficient that the lowest cost plan would cost more than 8% of your 2014 income, or if you are not required to file a declaration tax based on your low income level.
There are also exceptions for those whose religious beliefs prohibit medical treatment, members of a recognized division of the Ministry of Health, members of a tribe federally recognized, and people in other special situations.
How many penalty do I pay if I do not get insurance?
The penalty for 2014, which will be paid on your income tax due in April 2015, 1% of your annual income in 2014 $ 95 per person, whichever is greater.
If you have children under 18, the penalty is $ 47.50 per child -. up to $ 285 total per family
worth up to 2015, and again in 2016 the maximum penalty per family in 2016 was $ 2,085.
Pay a penalty does not mean that you are covered or right to medical services.
Have you compared the insurance plans on the market?
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