Health Insurance Tax Credit
The cost of family coverage has more than doubled since 2001, making health insurance unaffordable for most Americans. The new Federal health insurance tax credit is available to individuals and families with annual incomes between 100% and 400% of the federal poverty level ($23,550 - $94,200 for a family of four in 2013). The health insurance tax credit is fully refundable so that even middle income families and individuals can receive the full benefit of the of the tax credit.
After selecting and enrolling in a health insurance plan, advance payments are made directly to the insurer. A family of four (4) with an annual income of $48,000 would receive a Federal tax credit of $10,610. With the advance payments, the premium payment would drop from over $1,100 per month, to just under $260 per month, a significant savings for any working family. The amount of the tax credit is tied to the amount of the health insurance premium, so that older Americans who face higher premiums will receive a greater tax credit.