Under the Affordable Care Act (ACA), premium tax credits are available to help 
individuals and families buy insurance individual health through the health insurance market. You are eligible for a tax credit on premiums if you meet certain conditions of income and do not have access to affordable health insurance through an employer or government program such as Medicaid or Medicare. Tax credits for health insurance premium are "paying forward" which means they can be applied to your premium when you buy a health insurance coverage. Tax credit cards on the following premiums show the eligibility and the amount of tax credits, updated for 2016.
Eligibility for the tax credit premiums
If your company does not currently offer a group health insurance program and your employees may be eligible for premium tax credits on the purchase of insurance policies individual health Exchange on their condition. To be eligible, they must meet the following requirements:
- Buy coverage by the federal or state exchange
- annual household income falls within 100-400% of the threshold federal poverty for the family size
- do not receive coverage through a federal program
- not file married filing separately tax forms
- can be claimed as a dependent by another registrant
the federal poverty level (FPL) is adjusted based on the number of people in the household and each year for inflation. FPL is set by the Health and Human Services
Source :. Small Business Guide 2016 open enrollment
Employees who purchase a health insurance plan through their employer are not eligible for the tax credit on premiums granted under the affordable care Act. This appropriation is reserved for those who are unable to buy affordable insurance through their employer, but to take out individual insurance through their health insurance market.
The IRS uses a scale to determine exactly how much each individual will return to a tax credit on premiums. Generally, the higher the household income, the tax credit for the higher premium will be. The more money you make, the lower your premium tax credits are.
tax credit on premiums Chart -. Examples
The following table provides examples of how the premium tax credits can influence the price of a health insurance individual contract
source: small business Guide to open enrollment 2016
While insurance caps and credit amounts may vary slightly from year to year, Americans know exactly what to expect with the help of an online calculator on the website HealthCare .gov.
Conclusion
These tax bonuses often offset the cost of health insurance for a number of Americans, and are a great resource to increase the affordability of health insurance.
How the Affordable Care Act affect your family? What other questions do you have about the premium tax credits?
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