Tax Credits in 2014
When enrollment through the Health Insurance Marketplace starts in October 2013, you may be eligible for a new kind of tax credit you can use right away to lower what you pay for your monthly health plan premiums.
Tax credits can reduce your costs right away
With most tax credits, you have to wait until you file your taxes to get the credit. But the new tax credit available through the Marketplace lets you reduce your costs right away.
People who qualify can take the tax credit in the form of advance payments to lower their monthly health plan premiums starting in 2014, which can help make insurance more affordable.
You’ll see the amount of tax credit you’re eligible for immediately
You’ll see the amount of tax credit you’re eligible for right after you submit your Marketplace application (coming in October 2013). Once you enroll in a qualified health plan, you can control how much of your tax credit you want to use to help pay your monthly health plan premiums.
The tax credit is sent directly to your insurance company and applied to your premium, so you pay less out of your own pocket.
Eligibility depends on income & family size
The amount of tax credit you’re eligible for depends on how much income your family expects to earn. When enrollment starts in October 2013, it’s important to double-check your application to make sure everything is accurate. If the amount of income you report isn’t accurate, you may not get the right amount of tax credit you’re eligible for, and it could mean you have to pay back money at the end of the year.
Check back in October 2013, when enrollment starts, to fill out an application and see how much advance tax credit you and your family are eligible for.
Tax credits for small businesses
If you’re a small employer, you’ll have exclusive access in 2014 to an expanded Small Business Healthcare Tax Credit. This tax credit covers as much as 50% of the employer contribution toward premium costs for eligible employers who have low- to moderate-wage workers.
Learn more about how the Small Business Health Options Program (SHOP) will simplify the process of finding health insurance for your small business, give you access to tax benefits, and offer new consumer protections.