Calculate Health Coverage Tax Benefit 2017

In 2017, the Affordable Care Act (ACA) introduced the Health Coverage Tax Benefit, which provided tax credits to help individuals and families afford health insurance. This calculator helps you determine your potential 2017 Health Coverage Tax Benefit based on your income and household size.

What is Health Coverage Tax Benefit?

The Health Coverage Tax Benefit was part of the Affordable Care Act's efforts to make health insurance more affordable. It provided tax credits to help eligible individuals and families pay for health insurance premiums through the Health Insurance Marketplace.

Key points about the 2017 Health Coverage Tax Benefit:

Available to individuals and families with incomes between 100% and 400% of the federal poverty level
Provided tax credits to help pay for health insurance premiums
Credits were based on household income and size
Maximum credit amount varied by household size

Note: The Health Coverage Tax Benefit was part of the Affordable Care Act and was available in 2017. It was replaced by the Premium Tax Credit in later years.

How to Calculate

To calculate your 2017 Health Coverage Tax Benefit, you'll need to know your household income and size. The calculation involves several steps:

Determine your household income
Identify your household size
Calculate your modified adjusted gross income (MAGI)
Determine your income percentage based on the federal poverty level
Calculate your tax credit percentage
Multiply your income by the tax credit percentage to get your tax credit amount

Use the calculator in the sidebar to perform these calculations quickly and accurately.

Formula

The formula for calculating the 2017 Health Coverage Tax Benefit is:

Tax Credit = (Income × Credit Percentage) × Household Size

Where:

Income is your household income
Credit Percentage is based on your income relative to the federal poverty level
Household Size is the number of people in your household

The credit percentage is determined based on your income relative to the federal poverty level. For 2017, the credit percentages were:

100% - 138% of federal poverty level: 9.5% credit
138% - 200% of federal poverty level: 8.0% credit
200% - 300% of federal poverty level: 6.0% credit
300% - 400% of federal poverty level: 4.0% credit

Example Calculation

Let's walk through an example calculation for a household with an income of $50,000 and 3 members.

Determine the federal poverty level for 2017: $24,600 for a single person, $31,200 for a family of 3
Calculate the household income percentage: ($50,000 / $31,200) × 100 = 160%
Determine the credit percentage: 160% falls in the 138% - 200% range, so 8.0%
Calculate the tax credit: ($50,000 × 0.08) × 3 = $12,000

In this example, the household would qualify for a $12,000 tax credit to help pay for health insurance premiums.

FAQ

Who was eligible for the 2017 Health Coverage Tax Benefit?

Individuals and families with incomes between 100% and 400% of the federal poverty level were eligible for the 2017 Health Coverage Tax Benefit.

How was the tax credit calculated?

The tax credit was calculated based on household income, size, and the federal poverty level. The credit percentage varied depending on the income range.

Was the Health Coverage Tax Benefit available in all states?

Yes, the Health Coverage Tax Benefit was available to residents in all states through the Health Insurance Marketplace.

Could I use the tax credit to pay for any type of health insurance?

Yes, the tax credit could be used to help pay for health insurance premiums purchased through the Health Insurance Marketplace.

Was the Health Coverage Tax Benefit refundable?

No, the Health Coverage Tax Benefit was not refundable. It reduced your tax liability, but you couldn't receive a refund if your tax liability was zero.