DOCSLIB.ORG

Publication 974, Premium Tax Credit (PTC)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Publication 974, Premium Tax Credit (PTC) Userid: CPM Schema: tipx Leadpct: 100% Pt. size: 10 Draft Ok to Print AH XSL/XML Fileid: … tions/P974/2020/A/XML/Cycle04/source (Init. & Date) _______ Page 1 of 80 16:23 - 16-Apr-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury Contents Internal Revenue Service Future Developments ....................... 1 Publication 974 Reminders ............................... 2 Cat. No. 66452Q Introduction .............................. 2 What Is the Premium Tax Credit (PTC)? ......... 3 Premium Tax Who Must File Form 8962 .................... 3 Who Can Take the PTC ...................... 4 Credit (PTC) Terms You May Need To Know ............... 4 For use in preparing Minimum Essential Coverage (MEC) ........... 8 Individuals Not Lawfully Present in the United 2020 Returns States Enrolled in a Qualified Health Plan ... 19 Determining the Premium for the Applicable Second Lowest Cost Silver Plan (SLCSP) ... 27 Allocating Policy Amounts for Individuals With No One in Their Tax Family .............. 27 Allocation of Policy Amounts Among Three or More Taxpayers ....................... 28 Alternative Calculation for Year of Marriage .... 38 Self-Employed Health Insurance Deduction and PTC ............................. 57 How To Get Tax Help ...................... 76 Index .................................. 80 Future Developments For the latest information about developments related to Pub. 974, such as legislation enacted after it was published, go to IRS.gov/Pub974. What’s New Health reimbursement arrangements (HRAs). Begin- ning in 2020, employers can offer individual coverage health reimbursement arrangements (individual coverage HRAs) to help employees and their families with their medical expenses. If you are offered an individual cover- age HRA, see Individual Coverage HRAs, later for more information on whether you can claim a PTC for you or a member of your family for Marketplace coverage. Suspension of repayment of excess APTC for 2020. The American Rescue Plan Act of 2021 suspended the re- payment of excess advanced PTC (APTC) amounts for tax year 2020. Get forms and other information faster and easier at: • IRS.gov (English) • IRS.gov/Korean (한국어) • IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский) • IRS.gov/Chinese (中文) • IRS.gov/Vietnamese (Tiếng Việt) Apr 16, 2021 Page 2 of 80 Fileid: … tions/P974/2020/A/XML/Cycle04/source 16:23 - 16-Apr-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. For more information on how to report a change in Reminders circumstances to the Marketplace, visit HealthCare.gov or your State Marketplace website. Qualified small employer health reimbursement ar- Health coverage tax credit (HCTC). The HCTC is a tax rangement (QSEHRA). Under a QSEHRA, an eligible credit that is calculated based on a percentage of health employer can reimburse eligible employees for medical insurance premiums for coverage of eligible taxpayers expenses, including premiums for Marketplace health in- and their qualifying family members. The HCTC and the surance. If you were provided a QSEHRA, your employer PTC are different tax credits that have different eligibility should have reported the annual permitted benefit in rules. If you think you may be eligible for the HCTC, see box 12 of your Form W-2 with code FF. If the QSEHRA is Form 8885 and its instructions or visit IRS.gov/HCTC be- considered affordable coverage for a month, no premium fore completing Form 8962. tax credit (PTC) is allowed for the month. If the QSEHRA is not considered affordable coverage for a month, you Health insurance options. If you need health coverage, may still be eligible for the PTC but you must reduce the visit HealthCare.gov to learn about health insurance op- monthly PTC (but not below -0-) by the monthly permitted tions that are available for you and your family, how to pur- benefit amount. For more information, see Qualified Small chase health insurance, and how you might qualify to get Employer Health Reimbursement Arrangement, later. financial assistance with the cost of insurance. Requirement to reconcile advance payments of the Additional information. For additional information about premium tax credit. If you, your spouse with whom you the tax provisions of the Affordable Care Act (ACA), in- are filing a joint return, or a dependent was enrolled in cluding the individual shared responsibility provisions and coverage through the Marketplace for 2020 and advance the PTC, see IRS.gov/Affordable-Care-Act/Individuals- payments of the premium tax credit (APTC) were made and-Families or call the IRS Healthcare Hotline for ACA for this coverage, you must file a 2020 return and attach questions (800-919-0452). Form 8962 to claim a net PTC. You (or whoever enrolled you) should have received Form 1095-A, Health Insur- Photographs of missing children. The Internal Reve- ance Marketplace Statement, from the Marketplace with nue Service is a proud partner with the National Center for information about your coverage and any APTC. You Missing & Exploited Children® (NCMEC). Photographs of must attach Form 8962 even if someone else enrolled missing children selected by the Center may appear in you, your spouse, or your dependent. If you are a depend- this publication on pages that would otherwise be blank. ent who is claimed on someone else's 2020 return, you do You can help bring these children home by looking at the not have to attach Form 8962. photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. The requirement to repay your excess APTC for ! 2020 has been suspended. If you have excess CAUTION APTC for 2020, you are not required to file Form 8962 or to repay your excess APTC. Introduction Report changes in circumstances when you re-enroll This publication covers the following general topics, relat- in coverage and during the year. If APTC is being paid ing to the premium tax credit (PTC), which are also cov- for an individual in your tax family (defined later) and you ered in the Form 8962 instructions. have had certain changes in circumstances (see the ex- • What is the PTC? amples below), it is important that you report them to the Marketplace where you enrolled in coverage. Reporting • Who must file Form 8962. changes in circumstances promptly will allow the Market- • Who can take the PTC. (See Figure A—Can You Take place to adjust your APTC to reflect the PTC you are esti- the PTC, later.) mated to be able to take on your tax return. Adjusting your This publication also provides additional instructions for APTC when you re-enroll in coverage and during the year taxpayers in the following special situations. can help you avoid receiving excess APTC. Changes that you should report to the Marketplace include the follow- • Taxpayers who take the PTC and who are filing a sep- ing. arate return from their spouses because of domestic abuse or spousal abandonment. • Changes in household income. Taxpayers who take the PTC and who are also provi- • Moving to a different address. • ded a QSEHRA. • Gaining or losing eligibility for other health care cover- Taxpayers who need to calculate the PTC and APTC age. • for a policy that covered an individual not lawfully • Gaining, losing, or other changes to employment. present in the United States. • Birth or adoption. • Taxpayers who need to determine the applicable sec- • Marriage or divorce. ond lowest cost silver plan (SLCSP) premium. • Other changes affecting the composition of your tax • Taxpayers who need to allocate policy amounts for in- family. dividuals not included in any tax family. Page 2 Publication 974 (2020) Page 3 of 80 Fileid: … tions/P974/2020/A/XML/Cycle04/source 16:23 - 16-Apr-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. • Taxpayers who need to allocate policy amounts be- Form (and Instructions) cause one qualified health plan covers individuals 1095-A 1095-A Health Insurance Marketplace Statement from three or more tax families in the same month. 1095-B 1095-B Health Coverage • Taxpayers who married during the tax year and want to use an alternative PTC calculation that may lower 1095-C 1095-C Employer-Provided Health Insurance Offer their taxes. and Coverage • Self-employed taxpayers who wish to take the PTC 8885 8885 Health Coverage Tax Credit and the self-employed health insurance deduction. 8962 8962 Premium Tax Credit (PTC) This publication also provides additional information to help you determine if your health care coverage is mini- See How To Get Tax Help, near the end of this publica- mum essential coverage (MEC). tion, for information about getting publications and forms. Comments and suggestions. We welcome your com- ments about this publication and suggestions for future What Is the Premium Tax editions. You can send us comments through IRS.gov/ Credit (PTC)? FormComments. Or, you can write to the Internal Reve- nue Service, Tax Forms and Publications, 1111 Constitu- Premium tax credit (PTC). The PTC is a tax credit for tion Ave. NW, IR-6526, Washington, DC 20224. certain people who enroll, or whose family member en- Although we can’t respond individually to each com- rolls, in a qualified health plan offered through a Market- ment received, we do appreciate your feedback and will place. The credit provides financial assistance to pay the consider your comments and suggestions as we revise premiums for the qualified health plan by reducing the our tax forms, instructions, and publications. Do not send amount of tax you owe, giving you a refund, or increasing tax questions, tax returns, or payments to the above ad- your refund amount. You must file Form 8962 to compute dress. and take the PTC on your tax return. Getting answers to your tax questions.
Load more

Recommended publications
  • Dispute Form 1095-A for Covered California Consumer  If You Need Help in Spanish, Or Would Like This Form in Spanish, You Can Call 1-800-300-0213
    Dispute Form 1095-A for Covered California Consumer If you need help in Spanish, or would like this form in Spanish, you can call 1-800-300-0213. If you need help in a language other than English or Spanish, please see the final page of this document for language-specific telephone numbers. If you would like more information about Form 1095-A, please visit: www.coveredca.com. If you would like more information about filing your taxes, please visit: www.irs.gov/aca. Free tax advice is also available through Volunteer Income Tax Assistance at 1-800-906-9887 or if you are over 60 years old there is free Tax Counseling for the Elderly at 1-800-906-9887. Instructions: You may use this form to dispute the information on the Form 1095-A or request a Form 1095-A if you did not receive one. Based on any corrections you show on this form, Covered California will review and check the new information you report. If, after review, Covered California determines that the updated information you provided is correct, we will send you a new, corrected Form 1095-A. To help with our review, please include any supporting documents with this form. Supporting documents could include invoices from your health plan that show the amount of premium assistance (tax credits or APTC) you received and monthly premium you paid, or Covered California notices that show how much premium assistance you were eligible for. Do I have to use this form to make all changes to information on my Form 1095-A? No.
    [Show full text]
  • Rewarding Work: the Impact of the Earned Income Tax Credit in Greater Chicago
    Center on Urban & Metropolitan Policy Rewarding Work: The Impact of the Earned Income Tax Credit in Greater Chicago Alan Berube and Benjamin Forman “...working Findings This year the federal Earned Income Tax Credit (EITC) will provide over $30 billion to families live 18.4 million low-income taxpayers across the U.S., making it the largest federal aid pro- gram for working poor families. An analysis of the spatial distribution of the EITC in the Chicago region shows that1: throughout ■ In 1998, the Chicago region bene- ■ The percentages of families earning fited from nearly three-quarters of a the EITC in the Chicago region and the Chicago billion dollars in federal EITC the city of Chicago were similar to refunds. Nearly 60 percent of the those for the ten largest metropoli- region’s $737 million in EITC tan areas and their central cities. The metropolitan refunds—$430 million—was earned by concentration of EITC dollars in the families living in the city of Chicago, city of Chicago was also comparable to much larger than the city’s share of the the median among cities in the ten area, and the region’s population (33 percent). largest metro areas. ■ Nearly half a million (470,000) low- ■ Transforming Illinois’ state EITC EITC is an income working families in the into a refundable tax credit would Chicago region earned an EITC in contribute millions of dollars to the 1998. About one-quarter of all taxpay- budgets of low-income working important source ers living in the city of Chicago earned families in the Chicago region.
    [Show full text]
  • New Health Insurance Tax Credits in Idaho
    New Health Insurance Tax Credits in Idaho Families USA Help Is at Hand: New Health Insurance Tax Credits in Idaho © April 2013 by Families USA This publication is available online at www.familiesusa.org. Families USA 1201 New York Avenue NW, Suite 1100 Washington, DC 20005 Phone: 202-628-3030 Fax: 202-347-2417 Email: [email protected] www.familiesusa.org Cover Design: Nancy Magill, Families USA Help Is at Hand: New Health Insurance Tax Credits in Idaho tarting in 2014, the Affordable Care Act will extend health coverage to millions of Americans. This will be done, in part, by Soffering tax credits to help low- and middle-income Americans afford private coverage. These new tax credits, which will offset a portion of the cost of health insurance premiums, will soon become a reality, allowing many previously uninsured Idahoans to purchase quality health coverage. This report takes a closer look at these premium tax credits in Idaho, which will help Idahoans with incomes up to four times the federal poverty level ($94,200 for a family of four in 2013)1 afford coverage. The unique structure of the tax credits means that people will be protected from having to spend more than a set percentage of their income on health insurance premiums. These premium tax credits will take effect in January 2014, following open enrollment that begins in October 2013. Families USA commissioned The Lewin Group to use its widely respected Health Benefits Simulation Model to estimate how many people in Idaho and across the country could benefit from the new premium tax credits in 2014.
    [Show full text]
  • The Kentucky Marketplace's Internal Controls Were Generally Effective In
    Department of Health and Human Services OFFICE OF INSPECTOR GENERAL THE KENTUCKY MARKETPLACE’S INTERNAL CONTROLS WERE GENERALLY EFFECTIVE IN ENSURING THAT INDIVIDUALS WERE ENROLLED IN QUALIFIED HEALTH PLANS ACCORDING TO FEDERAL REQUIREMENTS Inquiries about this report may be addressed to the Office of Public Affairs at [email protected]. Daniel R. Levinson Inspector General October 2015 A-04-14-08036 Office of Inspector General http://oig.hhs.gov The mission of the Office of Inspector General (OIG), as mandated by Public Law 95-452, as amended, is to protect the integrity of the Department of Health and Human Services (HHS) programs, as well as the health and welfare of beneficiaries served by those programs. This statutory mission is carried out through a nationwide network of audits, investigations, and inspections conducted by the following operating components: Office of Audit Services The Office of Audit Services (OAS) provides auditing services for HHS, either by conducting audits with its own audit resources or by overseeing audit work done by others. Audits examine the performance of HHS programs and/or its grantees and contractors in carrying out their respective responsibilities and are intended to provide independent assessments of HHS programs and operations. These assessments help reduce waste, abuse, and mismanagement and promote economy and efficiency throughout HHS. Office of Evaluation and Inspections The Office of Evaluation and Inspections (OEI) conducts national evaluations to provide HHS, Congress, and the public with timely, useful, and reliable information on significant issues. These evaluations focus on preventing fraud, waste, or abuse and promoting economy, efficiency, and effectiveness of departmental programs.
    [Show full text]
  • How Do State Earned Income Tax Credits Work?
    TAX POLICY CENTER BRIEFING BOOK The State of State (and Local) Tax Policy SPECIFIC STATE AND LOCAL TAXES How do state earned income credits work? XXXX Q. How do state earned income tax credits work? A. In 2020, 28 states and the District of Columbia offered their own earned income tax credit (EITC). States typically set their credits as a percentage of the federal EITC. However, unlike the federal credit, some state EITCs are not refundable, which makes them much less valuable to very low-income families who rarely owe income tax. Twenty-eight states and DC offered their own earned income tax credit (EITC) in 2020. This does not include Washington’s credit which, while a part of the state’s tax code, has never been implemented or funded. If Washington did fund its credit, it would be the only state without an income tax to offer an EITC. In all but six states—Delaware, Hawaii, Ohio, Oklahoma, South Carolina, and Virginia—state EITCs, like the federal credit, are refundable. That is, if a refundable credit exceeds a taxpayer’s state income tax, the taxpayer receives the excess amount as a payment from the state. A nonrefundable EITC can only offset state income taxes, so the benefit is limited for low-income families with little taxable income. All states but one set their credits as a percentage of the federal credit, the exception being Minnesota, which calculates its credit as a percentage of income (table 1). State credits as a percentage of the federal credit ranged from 3 percent in Montana to a nonrefundable 62.5 percent in South Carolina.
    [Show full text]
  • Publication 5187, Affordable Care
    Affordable Care Act: PUBLICATION What You and Your 5187 Family Need to Know Tax Year 2020 Get forms and other information faster and easier at: IRS.gov (English) IRS.gov/Chinese (中文) IRS.gov/Russian (Pусский) IRS.gov/Spanish (Español) IRS.gov/Korean (한국어) IRS.gov/Vietnamese (TiếngViệt) Table of Contents Introduction . 3 Affordable Care Act Overview . 4 Individual Shared Responsibility Provision . .. 5 Premium Tax Credit and Advance Payments . 9 U .S . Citizens Living Abroad . 15 Summary . 16 Glossary . 17 2 AFFORDABALE CARE ACT: WHAT YOU AND YOUR FAMILY NEED TO KNOW Introduction This publication covers some of the tax provisions of the Affordable Care Act (ACA). It provides information about the individual shared responsibility and the premium tax credit. A glossary is included to help taxpayers understand some terms related to the health care law. What’s New? Under the Tax Cuts and Jobs Act, passed December 22, 2017, the amount of the individual shared responsibility payment is reduced to zero for months beginning after December 31, 2018. Beginning in tax year 2019 and beyond, Forms 1040 and 1040-SR will not have the “full-year health care coverage or exempt” box and Form 8965, Health Coverage Exemptions, will no longer be used. You need not make a shared responsibility payment or file Form 8965, Health Coverage Exemptions, with your tax return if you don’t have minimum essential coverage for part or all of the year. Reminder from the IRS: If you need health coverage, visit HealthCare.gov to learn about health insurance options that are available for you and your family, how to purchase health insurance, and how you might qualify to get financial assistance with the cost of insurance.
    [Show full text]
  • Key Elements of the U.S. Tax System
    TAX POLICY CENTER BRIEFING BOOK Key Elements of the U.S. Tax System TAXES AND THE FAMILY What is the earned income tax credit? Q. What is the earned income tax credit? A. The earned income tax credit subsidizes low-income working families. The credit equals a fixed percentage of earnings from the first dollar of earnings until the credit reaches its maximum. The maximum credit is paid until earnings reach a specified level, after which it declines with each additional dollar of income until no credit is available. HOW THE EARNED INCOME TAX CREDIT WORKS The earned income tax credit (EITC) provides substantial support to low- and moderate-income working parents who claim a qualifying child based on relationship, age, residency, and tax filing status requirements. It previously provided very little support to workers without qualifying children (often called childless workers), but the American Rescue Plan (ARP) significantly expanded the credit for these workers through 2021. By design, the EITC only benefits people who work. Workers receive a credit equal to a per-centage of their earnings up to a maximum credit. Both the credit rate and the maximum credit vary by family size, with larger credits available to families with more children. In 2021, the maximum credit for families with one child is $3,618, while the maximum credit for families with three or more children is $6,728. The maximum credit for childless workers is $1,502, roughly triple what is was prior to the ARP. After the credit reaches its maximum, it remains flat until earnings reach the phaseout point.
    [Show full text]
  • Not All of the Vermont Marketplace's Internal Controls Were Effective In
    Department of Health and Human Services OFFICE OF INSPECTOR GENERAL NOT ALL OF THE VERMONT MARKETPLACE’S INTERNAL CONTROLS WERE EFFECTIVE IN ENSURING THAT INDIVIDUALS WERE ENROLLED IN QUALIFIED HEALTH PLANS ACCORDING TO FEDERAL REQUIREMENTS Inquiries about this report may be addressed to the Office of Public Affairs at [email protected]. Daniel R. Levinson Inspector General March 2016 A-01-14-02507 Office of Inspector General http://oig.hhs.gov The mission of the Office of Inspector General (OIG), as mandated by Public Law 95-452, as amended, is to protect the integrity of the Department of Health and Human Services (HHS) programs, as well as the health and welfare of beneficiaries served by those programs. This statutory mission is carried out through a nationwide network of audits, investigations, and inspections conducted by the following operating components: Office of Audit Services The Office of Audit Services (OAS) provides auditing services for HHS, either by conducting audits with its own audit resources or by overseeing audit work done by others. Audits examine the performance of HHS programs and/or its grantees and contractors in carrying out their respective responsibilities and are intended to provide independent assessments of HHS programs and operations. These assessments help reduce waste, abuse, and mismanagement and promote economy and efficiency throughout HHS. Office of Evaluation and Inspections The Office of Evaluation and Inspections (OEI) conducts national evaluations to provide HHS, Congress, and the public with timely, useful, and reliable information on significant issues. These evaluations focus on preventing fraud, waste, or abuse and promoting economy, efficiency, and effectiveness of departmental programs.
    [Show full text]
  • Health Insurance Exchange Operations Chart
    Health Insurance Exchange Operations Chart *Chart updated June 12, 2015 Allison Wils As states continue to refine the operations of their health insurance exchanges, regardless of the exchange type (state-based exchange, state partnership exchange, or federally facilitated marketplace), it's helpful to compare and contrast operational resources. This chart contains each state's resources and forms for three distinct, and fundamentally important, areas of exchange operation: applications, appeals, and taxes. With links directly to the states' forms and guides related to these issue areas, this chart serves as a one-stop resource library for those interested in developing new, or revising old, versions of applications, appeals, and tax resources. Like all State Refor(u)m research, this chart is a collaborative effort with you, the user. Know of something we should add to this compilation? Your feedback is central to our ongoing, real-time analytical process, so tell us in a comment, or email [email protected] with your suggestions. State Application Forms & Guides Appeal Forms & Guides Tax Guides IRS: Form 1095-A Health Insurance Marketplace Statement IRS: Instructions for Form 1095-A Health Insurance Marketplace Statement IRS: Form 8962 Premium Tax Credit IRS: Form 8965 Health Coverage Federally-Facilitated Marketplaces Healthcare.gov: Appeal Request Exemptions Healthcare.gov: Application for (FFM) & State Partnership Form for Wyoming Marketplace (SPM) States (AK, Health Coverage & Help Paying IRS: Instructions for Form 8965 AL, AR, AZ, DE, FL, GA, IA, IL, IN, Costs Healthcare.gov: Appeal Request Health Coverage Exemptions KS, LA, ME, MI, MS, MO, MT, NC, Form for Select States (Group 1) Healthcare.gov: Instructions to IRS: Affordable Care Act Tax ND, NE, NH, NJ, OH, OK, PA, SC, Help You Complete Your Provisions SD, TN, TX, UT, VA, WA, WV, and Healthcare.gov: Appeal Request Application for Health Coverage Form for Select States (Group 2) WY) IRS: Pub.
    [Show full text]
  • What Is Pennie?
    COMMON What is Pennie? TERMS Pennie is Pennsylvania’s official destination for shopping for quality health and dental insurance plans and is Let’s make buying health Welcome to the only place that will help you find out insurance easier to understand if you are eligible for financial assistance Some of the terms you’ll see while to lower your monthly premium and/or you’re shopping include: out-of-pocket expenses. Premium When the only thing you know is that you need The amount you pay for your health health coverage, Pennie has the answers. coverage every month Deductible How much you owe for healthcare Key dates to remember services before your insurer starts to for 2021 coverage pay Copay Nov. 1, 2020, to Jan. 15, 2021 A predetermined rate you pay for healthcare services at the time of care Open Enrollment Recently uninsured? Co-insurance The percentage of costs of a covered First-time insurance Dec. 15, 2020 healthcare service you pay (20%, shopper? for example) after you’ve paid your Enrollment date for coverage deductible that starts Jan. 1, 2021 Want to compare plans Out-of-pocket maximum and prices? The most money in deductibles, Jan. 15, 2021 copays and co-insurance you could Last date to apply for 2021 pay each year (excluding your monthly premium), regardless of how much coverage medical care you use gets you covered. Network Get your health insurance questions answered, The healthcare providers and facilities shop and compare plans, and take the next (hospitals, urgent care centers, Pennie helps you shop, compare and step to good health with Pennie! labs, etc.) your health insurer has purchase health coverage.
    [Show full text]
  • The Premium Tax Credit a Tax Credit Available to Lower Income Taxpayers to Help Make Health Insurance More Affordable
    WEALTH SOLUTIONS GROUP The Premium Tax Credit A tax credit available to lower income taxpayers to help make health insurance more affordable. Financial & Estate Planning Department The Premium Tax Credit, which was created as part Audrey Blanke, Financial Planner of the Patient Protection and Affordable Care Act of Rich Braun, Financial Planner 2010, is intended to help make health insurance Chris Dolan, Senior Financial Planner more affordable for individuals with lower incomes by providing a tax credit to subsidize the cost of Brian Ellenbecker, Senior Financial Planner health insurance. Linda Grant-Smith, Financial Planner April, 2019 ELIGIBILITY FOR THE TAX CREDIT To qualify for the premium tax credit, a household must first have household income (defined below) that is between 100% and 400% of the Federal Poverty Level (FPL). Each year, the premium tax credit thresholds are adjusted based on inflation-adjustments applied to the FPLs. The table below shows the income ranges for various household sizes for 2019: Household Size 1 2 3 4 5 6 7 8 100% Poverty $12,140 $16,460 $20,780 $25,100 $29,420 $33,740 $38,060 $42,380 Level Income 138% Poverty $16,753 $22,715 $28,676 $34,638 $40,600 $46,561 $52,523 $58,484 Level Income 150% Poverty $18,210 $24,690 $31,170 $37,650 $44,130 $50,610 $57,090 $63,570 Level Income 200% Poverty $24,280 $32,950 $41,560 $50,200 $58,840 $67,480 $76,120 $84,760 Level Income 250% Poverty $30,350 $41,150 $51,950 $62,750 $73,550 $84,350 $95,150 $105,950 Level Income 300% Poverty $36,420 $49,380 $62,340 $75,300 $88,260 $101,220 $114,180 $127,140 Level Income 400% Poverty $48,560 $65,840 $83,120 $100,400 $117,680 $134,960 $152,240 $169,520 Level Income Note: The FPL increases by $4,320 for each additional family member.
    [Show full text]
  • Earned Income Tax Credit
    Earned Income Tax Credit Informational Paper 3 Wisconsin Legislative Fiscal Bureau January, 2015 Earned Income Tax Credit Prepared by Rick Olin Wisconsin Legislative Fiscal Bureau One East Main, Suite 301 Madison, WI 53703 http://legis.wisconsin.gov/lfb Earned Income Tax Credit Introduction The earned income tax credit (EITC) is A nonrefundable Wisconsin credit was first offered at both the federal and state levels as a enacted in 1983 Wisconsin Act 27. The credit means of providing assistance to lower-income was set at 30% of the federal credit and was workers. The credit provides a supplement to the available only in 1984 and 1985, due to its repeal wages and self-employment income of such by 1985 Wisconsin Act 29, effective with the families and is intended to offset the impact of 1986 tax year. Three years later, 1989 Wisconsin the social security tax and increase the incentive Act 31 reinstated a refundable state earned in- to work. come credit, and for tax years 1989 through 1993, the state credit was calculated as a percent- The federal earned income tax credit has been age of the federal credit. Effective for tax year provided since 1975. In tax years 1991 through 1994, a separate, stand-alone state credit was es- 1993, supplemental credits were also provided tablished by 1993 Wisconsin Act 16, but 1995 for health insurance and children under the age of Wisconsin Act 27 modified the credit to again be one. The supplemental credits were eliminated calculated as a percentage of the federal credit. beginning in 1994 and the credit was extended to lower-income families without children as part of Both the federal and Wisconsin credits are the federal Revenue Reconciliation Act of 1993.
    [Show full text]