ACA Tax Credit: What You Need to Know
The Affordable Care Act, also known as Obamacare, was signed into law in 2010. One of the most important parts of the ACA is the tax credit, which helps people afford health insurance.
Who is eligible for the ACA tax credit?
To be eligible for the ACA tax credit, you must meet the following criteria:
Be a U.S. citizen or legal resident
Not be claimed as a dependent on someone else’s tax return
Have household income below a certain level
Not be eligible for affordable health insurance through an employer or government program
How much is the ACA tax credit?
The amount of the ACA tax credit depends on your income and family size. In general, the credit is larger for people with lower incomes. However, the Inflation Reduction Act recently passed by Congress increased the tax credits beginning in 2023.
How do I claim the ACA tax credit?
You can claim the ACA tax credit when you file your federal income taxes. You can do this by using the IRS Form 8962, Premium Tax Credit.
What are the benefits of claiming the ACA tax credit?
The ACA tax credit can help you save money on health insurance. The credit can also make it easier for you to afford other important expenses, such as housing, food, and child care.
What are the drawbacks of claiming the ACA tax credit?
One of the potential drawbacks of claiming the ACA tax credit is that you may have to pay back some of the credit if your income is higher than you estimated when you filed your taxes. It’s important to work with a tax professional to make sure you are utilizing the correct information when filing your income taxes to avoid any potential need to repay any tax credits later on.
How can I get help claiming the ACA tax credit?
If you need help understanding how to claim the ACA tax credit, call our licensed insurance agent at 888-321-6323. We can help you determine if you are eligible for the credit and assist you in understanding how to correctly claim the credit.
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