ObamaCare Adds further Tax Penalties to Married Couples

From NPCA:

March 9, 2012

You probably already know the IRS tax code penalizes married couples. But did you know that ObamaCare will add another tax penalty, taking even more money out of married Americans’ pockets? There are two reasons for this: The ObamaCare tax credit is linked to the federal poverty level (FPL) and the FPL does not increase proportionately as household size increases. For example, in 2014, 400 percent of the FPL will be about $45,600 for a one-person household, increasing roughly $16,000 for each additional member ($61,600 for a two-person household). So, by linking the tax credit to the FPL, two individuals who make between $61,600 and $91,200 (twice the level of the one-person household) will not benefit from the tax credit since they will be over 400 percent of the FPL for a two-person household; BUT if they don’t get married or if they get a divorce and live together, they’ll each get the tax credit.   The Administration has proposed a rule that if one spouse is offered health insurance at work, even if it is self-only coverage, then no one in the family is eligible for the tax credit. For example, a 40-year old, married couple has two children. The husband earns $40,000 and the wife earns $30,000. The husband’s employer offers self-only coverage but the wife’s employer doesn’t offer health insurance. Because the husband has access to employer-offered insurance, the family would not receive any tax credits. However, if the couple lives together and is unmarried, the mom and the two children would qualify for a tax credit of $10,895 to use to purchase a health care policy. Yet another unintended effect of ObamaCare to look forward to!? Thanks for your support! Richard W. Walker Chief Operating Officer