A popular health care tax credit is temporarily enhanced by the American Rescue Plan Act (ARPA). The premium tax credit (PTC) is a refundable credit that helps individuals and families pay for health insurance through the Marketplace (part of the Affordable Care Act). Previously, taxpayers with household income above 400% of the federal poverty line didn’t qualify for the PTC and might have to spend up to 9.83% of their income on health insurance. To allow more people to qualify during the pandemic, the ARPA makes the credit available to those with incomes exceeding that limit for 2021 and 2022. The spending cap is also lowered to 8.5%, through 2022. Other PTC enhancements were also made. Call or visit our website for more information! www.mjscpa.com/
