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8 Things Accountants need to tell their Clients about Health Reform

Married? Must file jointly

If a couple is married - they must file jointly to receive the subsidy, even if only one person is applying for coverage thru the Marketplace. And the entire household income must be used to calculate their MAGI.  For same-gender couples - they also must file jointly.  The subsidy will not apply to child only coverage.

What the Tax Credit is Based On

The tax credit is calculated based on the maximum percentage of household income an eligible tax payer should pay for health insurance.  This percentage is applied to the “baseline Silver plan” which may vary by age and zip code. The resulting  tax credit -  a set dollar amount - may then be applied to any plan chosen.

Reduced Cost Sharing

In addition to premium discount, folks with incomes between 100 – 250% of FPL  will quality for “reduced cost sharing” on Silver plans. These plans have lower co-pays, deductibles and out of pocket limits.

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