Affordable Care Act Provisions You Should Know

There are many provisions and rules to know about Obamacare so let’s start with some basics that you should know.

Individual Shared Responsibility: This provision requires you and your family to have qualifying health insurance, otherwise you will need to make a responsibility payment (really a tax) on your 2014 tax return. The payment is the greater of 1 percent of your household income that is above your tax return filing threshold or a flat dollar amount of $95 per adult and $47.50 per child, limited to a family maximum of $285.

Small Business Health Care Tax Credit: A small business, defined as having fewer than 25 employees who work full-time, may be eligible for a tax credit to reduce the health insurance premium cost. The maximum credit is 35% of premiums paid for health insurance as long as the employer pays at least 50% of the premiums. Also, the average annual wages of employees must be less than $50,000.

Premium Tax Credit for Individuals: If you qualify, you may be able to receive a credit for your health insurance. To be eligible, you must satisfy the following requirements: You need to purchase your health insurance through the Health Insurance Marketplace, you need to have household income between one and four times the federal poverty line (for a family of four the range is $23,550 to $94,200), and you can’t be eligible for other coverage, such as Medicare.