Affordable Care Act (ACA) tax provisions for 2017

The Indivdual Shared Responsibility Payment (ISRP) has been repealed effective January 1, 2019.

The Premium Tax Credit (PTC).

NOTE: Unlike the penalty, the PTC has not been repealed and remains as is going forward.

The ACA created a marketplace exchange on the internet where individuals that are not offered health insurance by an employer can go to compare and purchase insurance. Many states, including Vermont set up their own exchange. See Useful Links to the left to go to the federal or VT site.

Many taxpayers are eligible for subsidies from the federal and some state governments (including Vermont) to help pay for health insurance. These subsidies can be applied for when signing up for insurance in the form of an Advance Premium Tax Credit (APTC) or a taxpayer can pay the full amount of insurance premiums during the year and, if eligible, claim a Premium Tax Credit (PTC) on the year-end tax return.

Warning: The calculation of advance subsidies is potentially inaccurate because they are based on an estimate of future income. If a taxpayer experienced a change in income or circumstances during the year (marriage, new job, new child, etc.) and did not report it to the health care exchange in order to have their subsidy adjusted, then the taxpayer may owe some or all of the advance credit back to the IRS when their year-end tax return is filed. It is also possible that the taxpayer received less subsidies than they were entitled to. The additional subsidy can be claimed on the tax return as a PTC.

Find more information on the tax credits.

These provisions are the major ones that affect individual taxpayers. There are other provisions that affect businesses.

Find more information on how the ACA affects employers.

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