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Premium Tax Credit

What is the Premium Tax Credit?

  • Way to help pay for required coverage
  • Available when insurance purchased through a federal or state insurance exchange
  • Income between 100% and 400% of poverty level
  • To qualify must not be eligible for Medicare, Medicaid, or Employer Insurance
  • Married couples must file a joint return
  • Benchmark plan premium based on Silver level plans
  • Expected contribution ranges from 2% to 9% of income
  • Credit estimated on prior year income
  • Will be reconciled on the 2014 tax return when filed in 2015
  • IRS released in September 2014 a draft version of  form 8962 "Premium Tax Credit"
  • Taxpayers will have to “pay-back” unearned credits when filing in 2015
 
 

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