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IRS Offers 7 Tax Tips on Health Care Credit

The Obama administration is relying on various federal agencies and organizations to help implement the complex rules under the Patient Protection and Affordable Care Act (PPACA), the comprehensive health care legislation otherwise known as “Obamacare.” Naturally, the IRS is expected to play a major role, including enforcement of the penalties for failing to obtain minimum coverage and imposition of the 3.8% Medicare surtax on “net investment income” (NII) for certain upper-income investors.

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[This is part of our ongoing series of articles on new developments relating to the Patient Protection and Affordable Care Act of 2010 (aka “Obamacare”).]

The Obama administration is relying on various federal agencies and organizations to help implement the complex rules under the Patient Protection and Affordable Care Act (PPACA), the comprehensive health care legislation otherwise known as “Obamacare.” Naturally, the IRS is expected to play a major role, including enforcement of the penalties for failing to obtain minimum coverage and imposition of the 3.8% Medicare surtax on “net investment income” (NII) for certain upper-income investors.

The tax collection agency is trying to do its part to better educate the public. Following up on prior postings, in February the IRS released a series of seven new “Health Care Tax Tips” designed to help individuals understand how the PPACA may affect their tax situations. In particular, the series focuses on provisions in the law taking effect in 2014. For a complete menu of the Tax Tips, go to http://www.irs.gov/uac/Newsroom/Health-Care-Tax-Tips2.

The information included in latest go-round of Tax Tips ranges from explanations about the premium tax credit to health care coverage choices for individuals. The seven topics  are listed below.

  1. IRS Reminds Individuals of Health Care Choices for 2014. This tells taxpayers how the health care choices they make for 2014 will have a tax impact.
  2. The Health Insurance Marketplace – Learn about Your Health Insurance Coverage Options. Readers can find out about obtaining health care coverage through the Health Insurance Marketplace.
  3. The Premium Tax Credit. This Tax Tip explains the basics of the premium tax credit, including who might be eligible and how to get the credit. 
  4. The Individual Shared Responsibility Payment – An Overview. Here, the IRS provides information about types of qualifying coverage, exemptions from having coverage, and making a payment if you do not have qualifying coverage or an exemption. 
  5. Three Timely Tips about Taxes and the Health Care Law. The fifth Tax Tip may help with filing of a 2013 tax return, including information about employment status, tax-favored health plans and itemized deductions.
  6. Four Tax Facts about the Health Care Law for Individuals. This posting offers basic guidance to taxpayers on determining if the PPACA Act will affect them and their families, and where to find more information.
  7. Changes in Circumstances Can Affect Your Premium Tax Credit. Learn the importance of reporting any changes in circumstances that involve family size or income when advance payments of the Premium Tax Credit are involved.

In addition to Health Care Tax Tips, the IRS.gov/aca (http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home) website offers informative flyers and brochures, Frequently Asked Questions (FAQs) and in-depth legal guidance regarding the tax provisions of Obamacare. Anyone interested in receiving copies of IRS tax tips via email on a variety of topics, including the PPACA, can subscribe at www.irs.gov/uac/Subscribe-to-IRS-Tax-Tips.