Premium Health Insurance Tax Credit

As any bankruptcy attorney can tell you health problems can lead to financial disaster, and one of the reasons for this has been that many Americans could not obtain the adequate health insurance. A major goal of Obamacare is to increase the number of people with health insurance, and beginning with the 2014 tax year certain individuals with a limited income can obtain a tax credit to help with the payment of their health insurance premiums.

To obtain the credit these individuals must buy health insurance through the Marketplace, be ineligible for insurance through an employer or government plan, file a joint tax return if married, and not be claimed as a dependent on another person’s tax return.

To meet the income eligibility for the program your household income must be between 100% and 400% of the federal poverty line. The federal poverty line is based on family size and is adjusted each year. For 2013 the poverty amount for the 48 contiguous states and the District of Columbia was $11,490.00, which would leave an individual with annual income up to $45,960.00 eligible for the credit. For a family of four the poverty level was $23,550.00 leaving a family of four with income up to $94,200.00 eligible for the credit.