2019 Health Insurance Tax Credit Calculator

What is the 2019 Health Insurance Tax Credit?

The 2019 Health Insurance Tax Credit was part of the Affordable Care Act (ACA) and provided financial assistance to help lower-income individuals and families purchase health insurance. The credit was available to people who purchased their insurance through the Health Insurance Marketplace (Healthcare.gov or state-based marketplaces).

The credit was designed to make health insurance more affordable by reducing the amount of premiums you pay out of pocket. The amount you qualify for depends on your income level and the cost of your health insurance plan.

Key Features of the 2019 Credit

• Available to individuals and families with incomes between 100% and 400% of the federal poverty level
• Maximum credit amounts varied by family size
• Credit could be applied to your federal income tax return
• Available for both employer-sponsored and marketplace plans

How to Claim the Credit

To claim the 2019 Health Insurance Tax Credit, you need to complete and file Form 8962 with your federal income tax return. Here's a step-by-step guide to claiming your credit:

1. Determine your eligibility using the calculator on this page
2. Gather your health insurance documents and income information
3. Complete Form 8962, Premium Tax Credit
4. Attach Form 8962 to your federal income tax return
5. File your tax return with the IRS

Required Documents

• Your health insurance policy documents
• Your 2019 income tax return or W-2 forms
• Proof of enrollment in a qualified health plan
• Your Social Security number or tax identification number

Eligibility Requirements

To qualify for the 2019 Health Insurance Tax Credit, you must meet several eligibility requirements:

Income Requirements

Your household income must be between 100% and 400% of the federal poverty level. For 2019, the federal poverty level was $12,140 for an individual and $24,600 for a family of four.

Plan Requirements

• You must have had qualifying health coverage for at least 3 months in 2019
• Your health plan must be offered through a qualified health insurance marketplace
• You must not be eligible for other coverage through an employer or government program

Worked Examples

Let's look at two examples to illustrate how the 2019 Health Insurance Tax Credit works.

Example 1: Single Individual

John is a single individual with an income of $30,000 in 2019. He purchased a health insurance plan through the marketplace that costs $1,200 per month. Here's how we calculate his credit:

1. Determine his income level: $30,000 is between 245% and 250% of the federal poverty level
2. Calculate his monthly premium: $1,200
3. Determine his monthly credit amount: $1,200 (since he's at the maximum income level)
4. Calculate his annual credit: $1,200 × 12 = $14,400

John would qualify for a $14,400 credit on his 2019 tax return.

Example 2: Family of Four

The Smith family has an income of $60,000 in 2019 and purchased a health insurance plan through the marketplace that costs $3,000 per month. Here's how we calculate their credit:

1. Determine their income level: $60,000 is between 245% and 250% of the federal poverty level
2. Calculate their monthly premium: $3,000
3. Determine their monthly credit amount: $3,000 (since they're at the maximum income level)
4. Calculate their annual credit: $3,000 × 12 = $36,000

The Smith family would qualify for a $36,000 credit on their 2019 tax return.