Taxes
IRS Updates FAQs For Premium Tax Credit
The IRS released a fact sheet on Feb. 9 that includes updated frequently asked questions about the ACA-created tax credit.
Feb. 12, 2024
The IRS released a fact sheet on Feb. 9 that includes updated frequently asked questions (FAQs) about the Premium Tax Credit.
The Affordable Care Act’s refundable Premium Tax Credit was created to help lower- and middle-income Americans pay for health insurance purchased through the healthcare marketplace (HealthCare.gov). Health insurance can also be purchased through some state exchanges.
The credit is refundable because, if the amount of the credit is more than the amount of a taxpayer’s tax liability, that person will receive the difference as a refund. If a taxpayer owes no tax, he or she can get the full amount of the credit as a refund.
Among the revisions are:
- Updated eligibility requirements;
- Updated unemployment compensation for 2020 and 2021; and
- Additional information on reporting, claiming, and reconciling the tax credit.
The IRS also included a new section on the affordability of employer coverage for employees and their family members.
These FAQs supersede earlier FAQs that were posted in FS 2022-13 on Feb. 24, 2022, the IRS said.