Main Obamacare Tax Provisions

The tax provisions you receive through enrollment with Obamacare apply to all individuals who are employed but do not receive coverage through their employer’s healthcare plan and to individuals who are self-employed. These provisions include:

• 0.9% Additional Medicare Tax

The tax applies to an individual’s wages (and self-employment income) which exceed $250,000 for joint married couples, $125,000 for separately filed married couples, and $200,000 for taxpayers who are not married.

• Adoption Credit

If you adopted a child, Obamacare raised the maximum credit you can claim per adopted child.

• Healthcare Coverage for Older Children

Any health coverage provided by an employer for an individual’s child is not tax-free if the child is under the age of 27 years old. It applies to several workplace and retiree health plans.

• Flexible Spending Health Arrangements

You are eligible to use a Health Savings Account through Obamacare. However, you cannot use the account for over-the-counter drugs or other expenses not considered medically necessary.

• Medical Expense Deductions

You can claim your medical expenses as deductions. Expenses can only be deducted if they are not covered by your insurance and reach 10 percent of your adjusted gross income.

Other Provisions

Other provisions include the Medicare Part D Gap Coverage for prescription drugs, the NIIT Provision, and the Premium Tax Credit Provision.

To learn more about these provision visit irs.gov.

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