How does the obamacare tax credit work?
Q: Will I have to pay the entire obamacare premium myself over the year and then at the end I get a tax credit on my return, or is my federal tax amount reduced paycheck to paycheck.? A: Neither. Your paycheck in unaffected by the tax credit. The credit goes directly to the insurance company for your 2014 premiums. When you file your tax return for 2014 in 2015, if you received too much credit, you will have to pay at least part of the excess back (in some cases, you will have to pay the entire credit back). If you received too little credit, then you will be paid the difference on your tax return. That is the current scenario, subject to change.
Is the Obamacare Advance Premium Tax Credit (APTC) Flawed?
According to the Advance Premium Tax Credit rules under Obamacare, you only qualify for these credits if your 2014 yearly income is between $11,490 to $45,960 for individuals. If so, you get a credit for your health insurance premiums, paid monthly. The problem with this is: if you originally qualified for this credit at the beginning of the year 2014 because you were unemployed, and then found work sometime during 2014, your total annual income could be greater than the threshold, and then you would be required to PAY BACK the credit on your 2014 taxes. This seems very flawed to me, because the credits you receive, should be based on a month-to-month basis, not a yearly basis. Currently, most qualifying state health insurances are based on a month-to-month income basis, while rules for Obamacare is based on a yearly basis. You could end up in a very bad position if you are originally unemployed at the beginning of 2014 and then find work which pushes your average monthly income up for 2014. You could end up owing THOUSANDS in taxes at the end of the year. Is this system flawed? Its almost like a catch-22. Or does anyone have any insight as to whether or not the IRS will look at whether or not someone was unemployed and then make some type of exception to theese rules in 2014, should an individual find work?
Healthcare premium tax credit??
If i qualify for premium tax credit say the premium is 581 but with my credit its 36 a month am I responsible for paying the 545 it took off for each month out of my tax return the next year? Because that's over 6000 a year Or does how that work cause i only get around 1000 back each year on taxes???? So confused
What is "tax credit"?
The ending of 14' and majority of this year has been very slow for me financially (construction). Since I didn't make enough income so I can be eligible for my union health insurance, I am now required to sign up for Affordable Health Care so I wont get fined for the 16' year. Can someone please explain to me in simple terms what "TAX CREDIT" means. Where is this "tax credit" coming from & will I have to pay it back, or will it be taken out of my tax return (if I'm even eligible for one).
What is premium tax credit?
I got a notice from the IRS about some recieveing some premium tax credit from the health insurance market place. Thing is i recieved health insurance from my employer all of 2015 (military) Its been 3 months since I filed my return. I called the irs 3 times already and they cant seem to do anything for me.. i just keep getting transfered to different people and they either dont know or tell me different answers all the time. Is there anywere I can go that can help me out with this? I cant sit on the phone waiting for the irs all day
How does the Obamacare income tax subsidy help make healthcare affordable to those who owe no taxes (due to low income)?
The advanced premium tax credit reduces the premium you have to pay for coverage. In addition, in states choosing to expand Medicaid those that didn't qualify before now may.
What percentage of low-income Obamacare insureds also get taxpayer-financed groceries, housing and Earned Income Tax Credit checks, and what percentage of uninsured, low-income citizens get taxpayer assistance?
Of necessity this is only a partial answer. In 2013, there were 73 million people living in EITC-eligible households. 31 million of those were children.25.4% filed as married48.7% filed as head of household25.9% filed as singleThe median AGI was $14,106. 35.6% received SNAP.The average amount received was $2407.Over 4.2 million household are likely to qualify for both the EITC and premium credit.