by John Darer® CLU ChFC CSSC RSP CLTC
The IRS has introduced, an online tool to help individuals and employers to estimate Affordable Care Act (ACA) Credits and Payments, through its Taxpayer Advocacy Service.
IRC 5000(a) provides, in part:
(a) Requirement to maintain minimum essential (medical) coverage
The Taxpayer Advocate Service has developed several tools for individuals and businesses to assist with estimating their Affordable Care Act (ACA) related credits and payments.
The Premium Tax Credit Change Estimator can help you estimate how your premium tax credit will change if your income or family size changes during the year. This estimator tool does not report changes in circumstances to your Marketplace. To report changes and to adjust the amount of your advance payments of the premium tax credit you must contact your Health Insurance Marketplace. Be sure to report all changes directly to that Marketplace because they can affect both your coverage and your final credit when you file your federal tax return.
The Individual Shared Responsibility Payment Estimator can help you estimate the amount you may have to pay if you did not have minimum essential coverage during the year. This tool can only provide an estimate of your individual shared responsibility payment. To determine the payment when you file your tax return, use the Shared Responsibility Payment Worksheet in the instructions for Form 8965.
Because these tools provide only an estimate, you should not rely upon them as an accurate calculation of the information you will report on your tax return. You should use these estimators only as a guide to assist you in making decisions regarding your tax situation.