The Affordable Care Act (ObamaCare) includes a provision for what are referred to as advanced premium tax subsidies to help pay a portion of the cost of individual health insurance. To qualify for this tax credit an individual/couple/family must have an Adjusted Gross Income level that falls approximately between 100% and 400% of the Federal Poverty Level and they must purchase their individual health insurance through a government health insurance marketplace (either state run or Federally managed).
The tax credit issue will be a tricky one as it requires people to estimate what their income levels will be in the coming year when they apply for coverage with a subsidy. When that person does their tax return for that year a true up analysis will be done by the IRS to determine if the person received the appropriate subsidy level, was under subsidized or over subsidized. Depending upon their findings the taxpayer may find themselves getting an extra refund at tax time if they were under subsidized while if it is determined they were over subsidized the amount of overpayment will be withheld from any tax refund they might qualify for. If it is determined that a person fraudulently claimed an insurance tax credit to which they were not entitled this could lead to felony charges against them in the worst case scenario.
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The tax credit issue will be a tricky one as it requires people to estimate what their income levels will be in the coming year when they apply for coverage with a subsidy. When that person does their tax return for that year a true up analysis will be done by the IRS to determine if the person received the appropriate subsidy level, was under subsidized or over subsidized. Depending upon their findings the taxpayer may find themselves getting an extra refund at tax time if they were under subsidized while if it is determined they were over subsidized the amount of overpayment will be withheld from any tax refund they might qualify for. If it is determined that a person fraudulently claimed an insurance tax credit to which they were not entitled this could lead to felony charges against them in the worst case scenario.