Beginning in 2014, the Patient Protection and Affordable Care Act (PPACA) will make available new premium tax credits to help individuals and families afford health insurance coverage purchased through a health insurance exchange. On May 18, 2012, the Internal Revenue Service (IRS) issued final regulations regarding the availability of these tax credits for individuals who enroll in qualified health plans through the Exchanges. Among other things, this final rule affirmed the eligibility criteria set forth in the proposed rule released last year, which, in accordance with PPACA, limited eligibility for the premium tax credits to citizens with income at or below 400 percent of the federal poverty line. Eligible individuals will also be required to file taxes jointly if married, and must not be claimed as a dependent by any other taxpayer. The final rule rejected calls by commenters to compute tax credits based on premiums for children for which taxpayers are not allowed a dependency tax exemption.
