This year you may be eligible for an unexpected tax credit. The new Affordable Care Act created a tax credit that millions of Americans are qualified to receive, yet most people are unaware that the new credit exists.
The IRS has finalized a ruling to allow taxpayers in some states who make up to 400% of the poverty level to receive a tax credit to help offset the cost of purchasing health insurance. The income amount to qualify for the tax credit varies among states, and there are some basic requirements:
- Taxpayers only are eligible to receive the tax credit if they purchase their insurance through their state’s Health Insurance Marketplace.
- Applications for insurance must be completed by the end of March, 2014, in order to qualify; and the credit is not retroactive.
- Taxpayers can choose to take the credit immediately to lower the cost of their health insurance premium, or may choose to apply to have the credit refunded in next year’s tax return.
To learn more about the confusing new health insurance tax credit, contact Agers Insurance Services in California.