Estimating Affordable Care Act Credits and Payments

The Affordable Care Act (ACA) established tax credits for individuals, with certain income levels, who obtain health insurance through a state or federal Health Insurance Marketplace.  The ACA also established tax payments for individuals that do not have minimum essential coverage during the year.  And when one’s life changes the amount of the tax credit or payment might change, too.  But how much will it change?

IRS Estimator Tools Available

To help answer that question, the IRS’s Taxpayer Advocate Service has developed several tools for individuals and employers to assist in estimating their Affordable Care Act (ACA) credits and payments.

You can obtain an estimate of how the tax credit amount will change, from a change in income or family size, by using the Premium Tax Credit Change Estimator, available atwww.taxpayeradvocate.irs.gov/estimator/premiumtaxcreditchange.

If you do not have minimum essential coverage during the year, you can estimate the amount of the Individual Shared Responsibility Payment you will owe by using the tool located atwww.taxpayeradvocate.irs.gov/estimator/isrp.

If you own a small business and would like to see if you are eligible for The Small Business Health Care Credit, the estimator can help determine eligibility and the amount of the potential credit. This estimator is available at www.taxpayeradvocate.irs.gov/estimator/smallbusiness2014

Posted in Individual TaxTax