Affordable Care Act tax credits have been expanded!
You may benefit from expanded health insurance tax credits! Affordable Care Act tax credits are now available to more people, and overpayments no longer need to be repaid.
Here's what you need to know:
- Under the latest COVID relief law, taxpayers filing for 2020 do NOT need to pay back overpayments of Affordable Care Act (Obamacare) Advance Premium Tax Credits!
People who got insurance from the Affordable Care Act Marketplace generally have to pay back any overpayment of credit they got on their taxes. Or, if they were eligible for more credit than they received, they can claim a tax refund. But this year, people who were overpaid don’t need to repay the extra and don’t need to file any special forms with their taxes. People who were eligible for more credit than they got can still receive a refund by including Form 8962 with their tax return.
If you already filed a 2020 tax return including repayment of Advance Premium Tax Credit, the IRS will automatically refund you any extra. You should not file an amended return.
If you haven't filed a 2020 tax return yet, make sure to take your Form 1095-A health insurance marketplace statement to your tax preparer to find out if you are eligible for a refund.
- Health insurance tax credits are also now open to people at higher incomes, including people who make more than 400% of the federal poverty line. The premiums are also capped at 8.5% of adjusted gross income. People who make under 150% of the poverty line and those who receive unemployment compensation in 2021 are eligible for zero premiums.
- Pennsylvania has a new, state-run health insurance exchange for Obamacare marketplace plans. Currently, there is a special enrollment period open until August 15, 2021 for individuals to sign up for coverage.
The website to shop for and choose a plan and check for updates is www.pennie.com