The Health Care Credit
Beginning in 2014, substantial savings on health insurance premiums will
be available to those who purchase through the state run insurance exchanges.
For those with incomes below 400% of the poverty level ($45,950 for single,
$62,040 for a couple, $94,200 for a family of 4), the federal government
will pay a portion of your premium.
The determination of the tax credit/subsidy will be made when you apply
for the insurance. The subsidy will be based on your projected 2016 income.
When you file your 2016 tax return, the projected income will be compared
with your actual income as shown on your return. You’ll pay back some of
the subsidy if your income is higher than projected, or receive an
additional credit if income is lower than projected.
There are also penalties for those who chose to remain uninsured. Although
the penalty was as low as $95 per person in 2014, by 2016 the penalty will
rise to $695 per person or 2.5% of your income.