Affordable Care Act - Is Obamacare still here?
Yes! The Affordable Care Act with the Preminum Tax Credit to help pay health insurance premiums and the Individual Shared Responsibility Payment is still the law of the land. You must have minimum essential coverage for everyone on your tax return for tax year 2018. If you do not qualify for an exemption from the requirement, you must compute the individual shared responsibility payment. The individual shared responsibility payment will no longer be a requirement starting in 2019 through 2025.
If you purchased health care from Healthcare.gov, or a related state health care exchange, you should have received a form 1095-A. It is required for the preparation of your tax return.
The insurers offering plans on the federal exchange, Healthcare.gov, are reporting increases in premiums for the upcoming year. The income levels to qualify for the health premium tax credit in 2018 incease. The tax credit is available to taxpayers with household incomes from 100% to 400% of the federal poverty level, Federal Poverty Levels for example:
- Single Taxpayers - $12,060- $48,240
- Family of 4 - $24,600 - $98,400