Help Individual Clients Calculate their ACA Tax Credit

As an insurance broker, a big focus of your business is undoubtedly on groups. But, with health care reform, you may have taken on more individual clients. And, with tax season coming, some individuals may qualify for a tax credit. You can help individual clients calculate their 2015 ACA tax credit--quickly and easily. But first, it's important to understand the rules.

According to the IRS, individuals must meet these requirements in order to be eligible:

• Buy health insurance through the federal Marketplace;
• Are ineligible for coverage through an employer or government plan;
• Are within certain income limits;
• Do not file a Married Filing Separately tax return (unless they meet criteria which allows certain victims of domestic abuse and spousal abandonment to claim the premium tax credit using the Married Filing Separately status); and
• Cannot be claimed as a dependent by another person

If individuals are eligible for the credit, they can choose to:

• Get it now. They can have some or all of the estimated credit paid in advance to their insurance company. This will help to lower pay out-of-pocket expenses for their monthly premiums.
• Get it later. They can wait until they file their tax returns to claim the full credit.

When individuals enroll, the Marketplace uses the information they provide about projected income and number of family members for the year to estimate the amount of the premium tax credit they will be able to claim on their tax returns. You can help them decide whether they want to have all, a portion or none of their estimated credit paid in advance directly to their insurance company.

If an individual client is eligible, you can use this tool from the Henry J. Kaiser Family Foundation to help him or her calculate ahead of time what the tax credit will look like. You can become an advisor of sorts and guide them toward the best decision for themselves and their family members about how they'd like to receive the credit. 

The information in this blog is based on Solstice's review of the publicly available materials and is not intended to provide legal advice. While we make every effort to present and update accurate information, interpretations can vary. The overviews provided here are intended as an educational tool only and should not be relied upon as legal or compliance advice. For legal advice, please contact your attorney.

Any questions about your current Solstice products? Login to your portal on https://www.solsticemarketplace.com/ 

Want to start selling Solstice? Give us a call at 877-760-2247 or email us at sales@solsticebenefits.com