facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog search brokercheck brokercheck
%POST_TITLE% Thumbnail

Affordable Care Act Premium Tax Credits

Affordable Care Act Premium Credits and the SLCSP

Did you participate in the healthcare marketplace but did not sign up for premium credits?  Perhaps you were unsure of your income and preferred to receive a refund at tax time rather than an unpleasant bill.  Taxes complete, you are surprised that you did not receive any credits.  You review your income for eligibility – for a single tax payer that’s adjusted gross income above $16,643 in Illinois for 2018, and below $48,240.  The numbers adjust each year and are different for larger family sizes.  If your income falls in this range and your plan was eligible you should receive your tax credit at tax time by filing IRS form 8962.  However, when you receive your 1095-A which details out your health care costs, you will notice zeros in Column B, the Monthly second lowest cost silver plan (SLCSP).   Prepare your own taxes or have a preparer that is unfamiliar with this – you or they may enter those zeros and you will not receive any premium tax credit even if you were entitled to one.  You need to use the healthcare.gov tool to find your correct amount.  You can access it here:  https://www.healthcare.gov/tax-tool/ .  Fill in that amount for column B when you complete the Form 8962 and voila, your credit should appear.  Remember, you cannot deduct the premiums as a healthcare expenses AND claim the credit.  However, the credit is likely your better option.  Did you miss out on this last year?  You can file an amended return and still receive the credit.