IRS Issues Final Regs On Obamacare Tax Credits, Penalties

The United States Internal Revenue Service (IRS) has recently released revenue procedures, final regulations and a notice on the application of certain health care provisions within the Affordable Care Act (ACA), including the premium tax credit and the individual employee mandate.

The revenue procedures issued by the IRS, effective for tax years beginning after December 31, 2015, include the indexing adjustments used to update the applicable percentage tables for determining a taxpayer's premium tax credit, which are worth USD5,000 per year on average and are designed to defray the cost of purchasing health insurance for lower income households.The IRS also provided final regulations relating to the ACA's requirement for individuals to maintain "minimum essential" health insurance coverage. Those individuals who do not comply this individual "employee mandate" will have to make "shared responsibility" payments, or tax penalties, to the IRS... Read More.