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How is the ACA tax credit on insurance premiums calculated?

Joane Goodroe
Nursing

The premium tax credit will vary based on family income and the cost of health insurance in the exchange available to the taxpayer. The credit will equal the difference between the premium for the second-lowest-price silver plan (also known as the benchmark plan) and a specified percentage of income. In 2014 the percentage ranges from 2 percent for those with incomes below 133 percent of poverty and goes up to 9.5 percent for those with incomes up to 400 percent of poverty.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.