Welcome,  
|   
May 25th, 2017

Understanding Affordable Care Act’s (ACA) Tax Provisions

Taxes

The Affordable Care Act contains comprehensive health insurance reforms and includes tax provisions that affect individuals, families, businesses, insurers, tax-exempt organizations and government entities. These tax provisions contain important changes, including how individuals and families file their taxes.

The law requires you and your dependents to have health care coverage, an exemption, or make a payment with your return. If you purchased coverage from the Health Insurance Marketplace, you may be eligible for the premium tax credit. If you do not have qualifying coverage or an exemption for each month of the year, you will need to make a payment with your return.

If the premium tax credit computed on your return is more than the advance credit payments made on your behalf during the year, the difference will increase your refund or lower the amount of tax you owe. This will be reported in the ‘Payments’ section of Form 1040.

If the advance credit payments are more than the amount of the premium tax credit you are allowed, you will need to add that portion to your tax liability by entering it in the ‘Tax and Credits’ section of your tax. This will result in either a smaller refund or a larger balance due.

If you received advanced credit payments, you must file a tax return and use a Form 862, Premium Tax Credit, to reconcile the credits you received. Capstone’s volunteer tax preparers are IRS trained to assist the public with these reconciliations, and all other tax matters.

QR Code – Take this post Mobile!
Use this unique QR (Quick Response) code with your smart device. The code will save the url of this webpage to the device for mobile sharing and storage.

Leave a Reply




Post Comment

 

left
Pause
Right
 
vt-world.com Webutation
 
The World Online
The World
403 US Route 302
Barre, VT 05641
Phone: (802) 479-2582
Copyright © 2017 The World Online