The Health Insurance Premium Tax Credit can help purchase health insurance coverage more affordable for people with moderate incomes. To be eligible for the health insurance tax credit, generally must meet three rules. First, you need to get your health insurance coverage through the Health Insurance Market. The open period for the purchase of health insurance coverage by 2014 through the Health Insurance Market which has open enrollment between 1 October 2013 to 31 March 2014.
Household Income Amounts for Health Care
Second, the household income must be within the range between one and four times the federal poverty line. For a family of four for the tax year 2014, that means revenue of $ 23,550 to $ 94,200. There are charts available from the IRS to help determine what amount a health premium tax credit that someone is eligible for.
Third, you may not be eligible for other coverage, such as Medicare, Medicaid or employer coverage that is sufficient under the health care laws and meets minimum coverage requirements.
If a market determines you probably qualify for the tax credit at the time of registration, you have two options:
- You can choose which part or all of the estimated credit is paid in advance directly to your insurance company to reduce what you have to pay of-pocket for their monthly premiums during 2014.
- Or, you can expect to get all the credit when you file your 2014 tax return in 2015.
If you wait to get the credit, this health insurance credit may increase a refund or reduce your balance due.
Elect Health Insurance Premium Tax Credit
If you elect to receive the credit in advance, changes in income or family size affect the credit for which you are eligible to receive. If the credit on the tax return you file in 2015 does not match the amount received in advance, you will have to repay any overpayment in advance, or you can get a bigger refund if you are entitled to more. It is important to tell your health insurance mark about changes in income or family size as they occur during 2014 because these changes affect the amount of your credit.
HCA Health Insurance Premium Tax Credit
If there is a change in credit, be sure that you have funds on hand in order to payback any credit that you are not eligible for. This may be better than getting a surprise tax when you file in April.