Smart Benefits: IRS Releases ACA Taxpayer Data for 2014
Monday, July 27, 2015
Premium Tax Credit Provision
Individuals who signed up for coverage through an Exchange chose to either have advance payments of the premium tax credit (APTC) made to their insurance provider to reduce their premiums through the year or get a premium tax credit (PTC) at tax time, or some combination of the two. Most eligible individuals opted for advance credit payments up front, and were required to reconcile APTC with the actual amount of PTC they were entitled to at tax time based on their 2014 household income.
• Among taxpayers who claimed PTC or reconciled APTC, approximately 1.3 million, or about 40 percent, claimed a net PTC (meaning PTC exceeded the APTC paid during the year).
• Approximately 1.6 million, or 50 percent, of taxpayers who claimed PTC or reported APTC reported excess APTC (meaning APTC paid during the year exceeded PTC).
• About .3 million or 10 percent of taxpayers received the correct amount of APTC during the year and did not need to make any adjustments at tax time or did not claim any PTC or APTC on their final return.
The IRS notes that its data on taxpayers who still need to reconcile is through the end of May.
Individual Shared Responsibility Provision
Under the individual shared responsibility provision, individuals are required to have qualifying health insurance coverage for each month of the year, have an exemption from the requirement to have minimal essential coverage, or make an individual shared responsibility payment.
• About 76 percent of taxpayers (currently approximately 102 million tax returns) checked the box to indicate they had qualifying coverage all year. Another approximately 7 million dependents, who do not have to report on their coverage, filed a return and did not have to do anything new this year.
• Approximately 7.5 million taxpayers reported a total of $1.5 billion in individual shared responsibility payments, the average amount of which was around $200.
• About 12 million taxpayers claimed a health care coverage exemption. Of the taxpayers who reported an individual shared responsibility payment, an estimated 300,000 low-income taxpayers reported a payment when they should have claimed a health care coverage exemption.
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