Will You Qualify for Obamacare Tax Credits in 2015?

Find out if you'll qualify for new health care credit available in 2015

Related Ads

Need Professional Help? Talk to a Lawyer

Enter Your Zip Code to Connect with a Lawyer Serving Your Area

searchbox small

Will you qualify for the new health care credit? It depends on how much you earn. Take a look at the following chart. It shows the maximum income households of various sizes can have to earn no more than four times the federal poverty level--the qualifying limit for the credit. If your household income is within these levels, you'll be among the 28.6 million Americans who will qualify for Obamacare health care credits in 2015.

For example, if you're single and have no more than $46,680 in income in 2015, you'll qualify for a health care credit. A family of four can earn as much as $95,400 and qualify.

Household Size

Income

1

$46,680

2

62,920

3

79,160

4

95,400

5

111,640

6

127,880

 


For each additional person, add

$16,640

Although they are called credits, the payments made under Obamacare are really a government-funded subsidy. You don't need to owe any income taxes to receive the credit. And it's paid directly to your health insurance company, not to you when you enroll in your health insurance plan. This means that you will not need to wait until your taxes have been filed and processed in to receive the credit; nor will you need to pay the full premium when you purchase health insurance and then wait to be reimbursed.

How much is the credit? It depends on your household size, income, and cost of health insurance where you live. Those with the lowest incomes will receive the largest tax credits. You can get an idea of how big a credit you'll qualify for by using the Kaiser Family Foundation Health Reform Subsidy Calculator. Plug in your age and income numbers and the calculator will give you an estimate of your subsidy. For example, a 40-year-old single person who earned $30,000 would, on average, qualify for annual credit of $820. A couple age 40 who have two children and $75,000 in annual income would get a $2,745 credit. The older your are, the larger your credit, because your health insurance costs are higher. For example, a single person age 60 with $30,000 in income would qualify for a $4,542 credit--far more than a 40-year-old single.

So, you can see, we're talking about a fair amount of money--enough so that you should be able to purchase health insurance even if you don't have it now.

If you already have health coverage through an employer or your spouse's employer, you won't need or qualify for the health insurance credits, subject to two important exceptions:

  • your employer's health plan covers less than 60% of the cost of covered benefits, or
  • your share of the employer's premium that you must pay from your own pocket is over 9.5% of your income.

If either exception applies, you may enroll in a plan through your state health insurance exchange and be eligible for premium and cost-sharing subsidies.

For details, visit the HealthCare.gov website.

March 2015

Get Informed

Empower yourself with our plain-English information

Do It Yourself

Handle routine tasks with our products

Find a Lawyer

Connect with a local lawyer who meets your needs

The fastest, easiest way to find, choose, and connect to tax lawyers

Related Ads
LA-NOLO3:LEADS.1.1.1.20150901.33681