On March 4th, the U.S. Supreme Court will hear arguments in King v. Burwell, a case challenging a core provision of the Affordable Care Act (ACA). The Court will decide whether individuals and families will continue to receive tax credits to help purchase insurance on the federally-facilitated health insurance marketplaces. There are currently 37 states that utilize this kind of marketplace.
The loss of tax credits would have dire consequences in these states — we estimate that nearly 7 million women would lose access to affordable coverage. Last year, 86 percent of people who sought coverage in the federally-facilitated marketplaces used tax credits to lower their premiums [PDF], and this year’s enrollees similarly rely on this help. If such a high proportion of Marketplace enrollees lose coverage following the Court’s decision, premiums for remaining enrollees would skyrocket, further destabilizing the market. Read more »
I have an almost 2 year old daughter, Lilly. She is so many things: funny, loving, adventurous, curious…expensive. I mean she’s worth it and all, but man does that girl eat her way (literally and figuratively) through our family budget every month. I know our family is not alone. It seems like everyone is talking about the rising cost of raising children—and it turns out that talk is actually true. And despite the rising cost of living and child rearing, most family income is not keeping up, delivering a one-two punch to working families’ bottom lines.
On June 23rd, the White House will hold a Working Families Summit to focus on the current needs of America’s working families, and potential policy solutions that can help address those needs. I’m hopeful that the Summit will be the beginning of a concerted push for changes that will respond to the economic realities of working families—including some changes in our tax code. There are many tax provisions that can help families make ends meet while raising kids—and a couple of commonsense proposals to make those tax provisions even more meaningful. Read more »
If you have access to health insurance coverage outside the health insurance marketplace (if you have coverage through your employer or a public insurance program such as Medicaid), then you are not eligible for the health insurance tax credits. But there is a special rule for employment based coverage – if your employer offers coverage that is unaffordable or doesn’t provide enough coverage, then you can say no to your employer coverage and enroll in the marketplace with a health insurance tax credit (if you’re otherwise eligible for the tax credit). Read more »
Most people shopping for health insurance through the Obamacare Marketplace will be eligible for financial assistance—called the Premium Tax Credit—to help them cover the cost of insurance. We’re talking real help—the average amount of financial assistance per family is estimated to be $5,290.Time is running out to sign up this year—the deadline to get started is next Monday, March 31! Read on to get answers to some commonly asked questions about the Premium Tax Credit—and then dash on over to healthcare.gov or call (800) 318-2596 and get started on your application today!
Am I eligible?
There are three basic eligibility requirements for the Premium Tax Credit:
Your income must be between 100%-400% of the federal poverty line (for a family of four, that’s an income between $23,550 and $94,200).
You must buy health insurance through the Marketplace (sometimes called Exchange)—either by visiting www.healthcare.gov or calling (800) 318-2596.
To receive the Premium Tax Credit, you can’t be eligible for other health insurance coverage—either through another government program like Medicaid or Medicare, or through your employer.
As the April 15 tax filing deadline approaches, NWLC and its partners want you to know about federal and state tax credits for which working families may be eligible -- and how to get help filing tax returns.
Many families are still struggling to recover from the recession, and keeping up with their bills can be a challenge. So it’s important now, especially for families with children, to claim federal and state tax credits that can to help them make ends meet. To do that, families must file tax returns.
But wait, you ask—what do taxes have to do with signing up for health insurance? Quite a bit, it turns out. The IRS just released some health care tax tips—from those, here are a couple of really important highlights to keep in mind between now and next tax season. And yes, I did say next tax season—what you know now will definitely help you later. Read more »
This post is the ninth in a series of weekly posts containing tax information and filing tips. Check back next week for our next post, or click here to read past posts.
So today is the deadline for filing your federal tax return (and most state returns). Although many people associate filing their taxes with feelings of confusion, stress, and general misery, tax time can also help give low- and moderate-income families a financial boost through federal tax credits like:
Earned Income Tax Credit, designed to supplement the wages of low- and moderate-income families (those who earned less than $50,270 in 2012). This credit is worth up to $5,891 and is available as a refund for families who owe little or no income tax.
Child Tax Credit, designed to help families offset some of the costs of raising children. This credit is worth up to $1,000 per child. Families who owe little or no income tax can receive some or all of this credit as a refund if they earned at least $3,000 in 2012.
Child and Dependent Care Tax Credit, designed to offset some of the child and dependent care costs that families incur in order to work. This credit is worth up to $2,100, though the amount that can be claimed is limited by the amount a family pays in federal income taxes.
And many states offer their own versions of these credits. Read more »
This post is the sixth in a series of weekly posts containing tax information and filing tips. Check back next week for our next post, or click here to read past posts.
Taxes. Just saying the word can make people groan. But the reality is, this time of year can actually bring good news to low- and moderate-income families all over the country. Federal tax credits such as the Child and Dependent Care Tax Credit (worth up to $2,100), the Child Tax Credit (worth up to $1,000 per child), and the Earned Income Tax Credit (worth up to $5,891), can give a boost to families whose incomes are too low to owe taxes.
One family in Dallas took advantage of free tax preparation at a United Way VITA site and was rewarded for their effort. They qualified for the federal EITC and received nearly a $6,000 refund! Less than two weeks later, the refund was in the family's bank account and helped to pay for things that the family really needed: children's clothes, a crib, and a new car. Read more »