Premium tax credit for health insurance purchased on Exchange and related guidance.
Individuals, whose household income is within certain income limits and who aren’t eligible for other qualifying coverage or “affordable” employer-sponsored health insurance plans that provide “minimum value” are allowed a refundable premium tax credit (also known as a health care affordability tax credit or premium assistance credit) to subsidize the purchase of certain health insurance plans through a State-established American Health Benefit Exchange
For each month nonexempt U.S. citizens and legal residents must maintain “minimum essential health coverage” for themselves and dependent family members or pay a shared responsibility penalty with their federal tax return. This requirement is commonly referred to as the “individual mandate.” Minimum essential coverage includes government-sponsored programs, eligible employer-sponsored plans; plans in the individual market, certain grandfathered group health plans, and other specified coverage. The amount of the penalty is generally the sum of “monthly penalty amounts” for all months in the tax year in which any nonexempt individual. For whom the taxpayer is liable did not have minimum essential coverage. The monthly penalty amounts, in turn, are computed based on a flat dollar amount of $695 or percentage of income for 2017. In addition, For months beginning after Dec. 31, 2018, the amount of the individual shared responsibility payment is reduced to zero. This repeal is permanent.