How to Save on Your Taxes with ACA Health Insurance

The Affordable Care Act (ACA) has made health insurance more affordable for millions of Americans. But did you know that you can save even more money on your taxes by taking advantage of the ACA’s tax credits and deductions?

The ACA Tax Credit

The ACA tax credit is a refundable tax credit that helps low- and middle-income Americans afford health insurance. The credit is available to individuals and families who purchase health insurance through the Health Insurance Marketplace. The amount of the credit you can receive depends on your income, family size, and the cost of your health insurance plan.

To qualify for the ACA tax credit, you must meet the following requirements:

You must be a U.S. citizen or legal resident.
You must have a Social Security number.
You must not be claimed as a dependent on someone else’s tax return.
Your income must be within certain limits.

ACA Deductions

In addition to the ACA tax credit, you may also be able to deduct the cost of your health insurance premiums from your taxes. The amount of the deduction you can take depends on your income and the type of health insurance plan you have.

To claim the ACA deduction, you must itemize your deductions on your tax return. This means that you must list the total amount of your deductible expenses, including your health insurance premiums, on Schedule A of your tax return.

How to Claim the ACA Tax Credit and Deduction

If you qualify for the ACA tax credit or deduction, you can claim it on your federal income tax return. You will need to complete Form 8962, Premium Tax Credit, and Form 1040, U.S. Individual Income Tax Return. You can download these forms from the IRS website.

Getting Help with Your ACA Taxes

If you need help claiming the ACA tax credit or deduction, you can get free help from a tax preparer or from the IRS. You can also find more information about the ACA on the IRS website.

Conclusion

The ACA has made health insurance more affordable for millions of Americans. But did you know that you can save even more money on your taxes by taking advantage of the ACA’s tax credits and deductions? If you qualify for the ACA tax credit or deduction, be sure to claim it on your tax return.