Academic journal article Journal of Accountancy

Health Care Premium Credit Rules Proposed

Academic journal article Journal of Accountancy

Health Care Premium Credit Rules Proposed

Article excerpt

The IRS released proposed regulations in August (REG-131491-10) implementing the health insurance premium tax credit, which was enacted last year by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act and is effective starting in 2014.

The proposed regulations were part of a "next step" announced by the Treasury Department and the Department of Health and Human Services (HHS) to establish "affordable insurance exchanges" that under the health care acts will allow individuals and small businesses to purchase private health insurance coverage, also starting in 2014.

Together, the IRS and HHS released three sets of proposed rules. The proposed IRS regulations provide guidance to the insurance exchanges--and to individuals who enroll in the exchanges' health plans--in claiming the premium tax credit, including an advance credit. The other proposed rules, released by HHS, provide guidance on eligibility determination for enrollment in a qualified health plan or insurance affordability program and address coordination of exchange coverage with Medicaid and the Children's Health Insurance Program.

To be eligible for a premium tax credit (IRC [section] 36B(c)(1)), a taxpayer must (1) have household income between 100% and 400% of the federal poverty line amount for his or her family size, (2) not be claimed as a dependent by another taxpayer and (3) if married, file a joint return. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.