Obamacare--More facts: 2. For those eligible for a subsidy: Instead of applying when they file their taxes, eligible individuals and families can apply for this tax credit when they sign up for insurance. The government will calculate how much is owed in the tax credit, and the amount will be paid directly to the insurance company. Then, the insured person only needs to pay the remaining portion of the premium (normally paid out in monthly installments) to the insurer. If individuals or families choose to apply for the credit when they file their taxes, this will be a refundable credit. Those who can afford to pay their health insurance premiums throughout the year may take that route, in which case the subsidy will first pay down any taxes the individual has due, and whatever is left over will be distributed as a tax refund. **a tax credit is a check in the mail…unless a person opts to have the credit used each month to pay toward their premium.
Posted on: Mon, 09 Sep 2013 01:59:40 +0000
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