Obamacare

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.