Olson says that one area in which the IRS has made heavy use of unreal audits is in asking taxpayers about conflicts between the information on their Form 8962 premium tax credit filings and information in ACA public exchange programs' Form 1095-A reports on taxpayers' use of advance premium tax credit
The federal government sent about $28 billion in Affordable Care Act advance premium tax credit
subsidy money to health coverage providers during its 2016 fiscal year.
Beginning in 2014, people applying for private health insurance coverage through the Affordable Care Act's health insurance marketplaces exchanges during open enrollment periods may apply for an advance premium tax credit
. The tax credit helps offset the cost of monthly insurance premiums.
The IRS calculates advance premium tax credit
amounts based on taxpayers' estimates of income and family size for the year provided at the time they enroll in an exchange plan.
* When you get health insurance through the marketplace, you may be able to get the new advance Premium Tax Credit
which will immediately reduce your monthly premiums.
Most will not receive enough (if any) advance premium tax credit
(subsidy) to offset the higher premium cost.
As a result, in 2017 she qualified for the Affordable Care Act advance premium tax credit
The IRS already has a regulation to deal with high-income people who lie about their income to qualify for advance premium tax credit
One program, for exchange plan users with income from 138% of the federal poverty level (or, in some states, 100% of the federal poverty level) to 400% of the federal poverty level, provides "advance premium tax credit
" (APTC) subsidies.
The analysts also produced a separate paper showing that, for most people who qualify for advance premium tax credits
, the Affordable Care Act advance premium tax credit
program will hold most ACA exchange system users' share of the monthly premium costs to less than $75, even if the full, unsubsidized cost of the premiums for all available products rises by 50 percent.
For Colorado residents who qualify for the Affordable Care Act advance premium tax credit
subsidy, the full cost of coverage has increased 30%, to $758 per month.