Do I Make Too Much for an ObamaCare Tax Credit?
Depending upon your income level, you may be eligible to receive tax credits as part of ObamaCare (aka Patient Protection And Affordable Care Act). These tax credits can help alleviate the costs associated with paying for your family’s health insurance coverage. As other tax credits work, the Affordable Care Act Tax Credit allows you to reduce your tax obligation to the federal government.
In this post, we’ll examine what income levels qualify for the tax credits. We’ll also offer some tips for picking an eligible plan.
What Income Levels Qualify for the Tax Credit?
The number of people in your household and your income determine whether or not you are eligible for the tax credit. There is a specified income amount for each level; but, the general rules are that in order to qualify for the credit, your income must be:
- above 140% of the poverty level
- up to 400% of the poverty level
For a family of four, the income level could be between $70,000 and $80,000. Many Americans are quite surprised to learn that the tax credit is available to household incomes that high. It’s important you discuss your family’s eligibility with a qualified CPA (Certified Public Accountant) before ruling anything out.
Is My Health Care Coverage Eligible for the Tax Credit?
In order to receive the tax credit, you must purchase your insurance from the federal marketplace. A self-employed person who bought insurance elsewhere may not owe a penalty, but he or she also won’t receive a tax credit (even if income guidelines are met). This is another way the government provides an incentive for Americans to purchase their insurance from the federal marketplace.
Tax Advice You Can Trust
Baker Retirement & Wealth Management, PC has been providing tax services in the greater Evansville area for nearly thirty years. We make it our business to understand the ins and outs of ObamaCare and other federal regulations that impact your taxes. We help families and business owners in Newburgh, Chandler, Rockport, Tell City, Boonville, Evansville, and beyond. Join our family today.
Contact the tax experts at Baker today by calling 1-866-244-3517.Talk to a CPA for Free