Did you know that the Affordable Health Care Act also known as Obama-care has two tax credits that will help you pay your health insurance premiums?
Most people are aware of the health insurance mandate that forces people to have health insurance coverage by imposing a penalty for those who don't have. But very few are aware of the tax credits that will help people who simply can't afford to pay the minimum premiums.
The Affordable Health Care Act's health insurance mandates (There are two mandates, an individual's and an employer's. Both will take affect in 2014.) don't include individuals for whom the lowest level health insurance premiums are more than 8% of their income and employers that have less than 50 employees.
So to encourage these people to purchase health insurance for them or their employees, the Act included two new tax credits; one for employees and one for individuals.
This is the first time that a health insurance tax credit is available. Until the Affordable Healthcare Act the only tax help for paying for health insurance were tax deductions like the self employed health insurance deduction or the medical expense itemized deduction.
Tax credits are more valuable than tax deductions, since the tax deduction just reduces the taxable amount but a tax credit will reduce the actual tax.The tax credit for individuals and families is also refundable meaning that you can get a refund even though you do not owe any tax.
Other ways to benefit from paying health insurance is:
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How much will you get for the Child and Dependent Care Credit?
Check out this new calculator, to see how much your credit will be.
For more information or to see if you are eligible see the Child and Dependent Care Credit page.
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