Affordable Care Act Tax Provisions
for Individuals and Families
Affordable Care Act, or health care law (also know as
Obamacare) contains new health insurance coverage and
financial assistance options for individuals and families.
The IRS will administer the tax
provisions included in the law. Visit
more information on coverage options and financial assistance.
Do I need to do
anything right now to get ready for the changes coming in
The premium tax credit can help
make the cost of purchasing health insurance coverage through
the Marketplace more affordable for individuals and families
with low to moderate incomes.
You may have received a letter
from your employer providing information about the new
Marketplace, and any health insurance coverage your employer
may offer. For more information about coverage options through
the Marketplace, visit HealthCare.gov. If you have questions
about the coverage offered by your employer, please contact
Considerations for 2013
Open Enrollment for the Health Insurance Marketplace:
The open enrollment period to purchase health care coverage
through the new Health Insurance Marketplace begins Oct. 1,
2013. When you get health insurance through the marketplace,
you may be able to get advance payments of the premium tax
credit that will immediately help lower your monthly premium.
Learn more at
Filing Requirement: If you do not have a tax filing
requirement, you do not need to file a 2013 federal tax return
to establish future eligibility or qualify for future
financial assistance, including advance payments of the
premium tax credit to purchase health insurance coverage
through a Health Insurance Marketplace. Learn more at
W-2 Reporting of Employer Coverage: Certain employers
are required to report the value of the health insurance
coverage they provide. The value of health care coverage as
reported by your employer in box 12 and identified by Code DD
on your Form W-2 is not taxable.
Itemized Medical Expenses: You can deduct your
unreimbursed medical and dental expenses that exceed 10
percent of your adjusted gross income on your 2013 tax return.
The 7.5 percent threshold will remain for those 65 and older
for tax years 2013 through 2016.
Other ACA Tax Provisions:
Additional Medicare Tax,
Premium Rebate for Medical Loss Ratio,
Health Flexible Spending Arrangements,
Health Saving Accounts, and
Net Investment Income Tax.
Looking ahead to 2014
Premium Tax Credit: To claim the
premium tax credit, you must get insurance through the
Marketplace. You can elect to have advance payments of the tax
credit sent directly to your insurer during 2014, or wait to
claim the credit when you file your tax return in 2015. If you
choose to have advance payments sent to your insurer, you will
have to reconcile the payments on your 2014 tax return filed
Individual Shared Responsibility
Payment: Starting January 2014, you and your family must
either have health care coverage, have an exemption from
coverage, or make a payment when you file your 2014 tax return
in 2015. Most people already have qualifying health care
coverage and will not need to do anything more than maintain
that coverage throughout 2014.
Change in Circumstances: If you
are receiving advance payments of the premium tax credit to
help pay for your insurance coverage, you should report
changes such as income or family size to your marketplace.
Reporting changes will help to make sure you are getting the
proper amount of assistance.
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