Confused About ACA Tax Credits? Here’s What You Need to Know

The Affordable Care Act (ACA), also known as Obamacare, provides tax credits to help make health insurance more affordable for many people. However, there are some cases you will not be eligible for these tax credits. Recently, someone posted on that they were not eligible for tax credits because they had employer-sponsored coverage.

If you are in a similar situation, don’t panic! There are a few things you can do to find out if you are eligible for tax credits and to appeal the decision if you are denied.

What are tax credits?

Tax credits are a dollar-for-dollar reduction in the amount of taxes you owe. The ACA provides tax credits to help people afford health insurance. The amount of the tax credit you can receive depends on your income, family size, and other factors.

Eligibility for tax credits.

To be eligible for tax credits, you must meet all of the following requirements:

You must be a U.S. citizen or legal resident.
You must not be incarcerated.
You must not be eligible for Medicare.
Your income must be below a certain level.
You must have health insurance that meets certain minimum standards.

Employer-sponsored coverage.

If you have employer-sponsored coverage, you may not be eligible for tax credits. However, there are some exceptions to this rule. For example, you may be eligible for tax credits if your employer-sponsored coverage is not affordable or does not provide adequate coverage. You’ll need to report your employer health insurance information on your ACA application whether you will be covered by employer plan or not, and if you are covered by employer plan, indicate when will the coverage end.

How to apply for tax credits.

You can apply for tax credits when you file your federal income taxes. You can also apply for tax credits through the Health Insurance Marketplace.

If you are denied tax credits

If you are denied tax credits, you can appeal the decision. You must file an appeal within 60 days of the date you received the denial letter.

The appeal process

The appeal process can take several months. During the appeal process, you will have the opportunity to provide additional documentation to support your claim for tax credits.

Getting help

If you need help with the appeal process, you can contact a licensed agent or a consumer assistance organization.

Conclusion

If you are not eligible for tax credits, there are still other ways to get help paying for health insurance. You may be able to get help from your state or local government. You may also be able to find affordable health insurance plans through the Health Insurance Marketplace.