The credits of tax illness insurance premium may make it more affordable individual health insurance for many Americans. You are eligible for a tax credit if your income is between certain income limits and that you are not available, a qualified affordable coverage through an employer or government program. In this article, we'll take a look at the premium income limits of the health insurance tax credit in 2016.
Note - This blog is based on our new infographic, 7 truths about the cost of health insurance in America. Check out the full infographic here.
About tax credits health insurance premiums
In brief, the tax credits for health insurance premium are available for policies individual or family health insurance available on public exchanges, also known as the markets.
tax credits the health insurance premium are "advanced payment", which means they can be applied to your premium when you buy a health insurance coverage.
premium tax credits cap the amount you pay each month for coverage on a sliding scale based on income.
Income Limits
tax credits are available for households with incomes up to 400% of the federal poverty level (FPL). This means households earning up to $ 47,080 for an individual in 2015, or $ 97,000 for a family of four, qualify. Here is a more detailed look eligibility based on household income and family size:
Read more: Charts premium tax credit 2016
calculating your tax credit for health insurance premiums
with a tax credit, your insurance premium is capped on a sliding scale between 2 and 9.6 percent of income, depending on your income.
For example, if you make $ 23,540 per year in 2015 (0 percent FPL), the maximum amount you will pay for health insurance is 6.34 percent of your income that is $ 1,492 / year ($ 124 / month).
There are several online calculators, like this one, available to help you understand eligibility and easily calculate savings.
Conclusion
Understand the income limits for the tax credits for health insurance premium can help you understand eligibility for discount. For coverage in 2016, the income limits are $ 47,080 for a single and $ 97,000 for a family of four.
What questions do you have about tax credits for health insurance premium? Leave a comment or question below.
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