IRS Issues Final Rules on Health Insurance Premium Tax Credit

The IRS has finalized regulations on the health insurance premium tax credit under the Obama health care plan. The credit is allowed for the cost of health insurance paid by individuals who enroll in qualified health plans through the new Affordable Insurance Exchanges. The final rules specify that the credit may not be claimed for a child of the taxpayer unless that child is a dependent of the taxpayer. The rules also explain how to compute household income and define the federal poverty line for purposes of determining a taxpayer's eligibility for the credit. To be eligible, a taxpayer must household income under 400% of the federal poverty line for the taxpayer's family size. Comments on the final rules are due August 21, 2012.

Click here for a copy of T.D. 9590, the final rules »

IRS News Archives

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