Health Insurance 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 $6,781. 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.