Pros and Cons
of Health Care Reform Blog

Jun 10

AHCA-The Winners and Losers-Part 2-Tax Credits and Subsidies

Posted by Dina Collins on Saturday, June 10, 2017

With the proposed AHCA (aka Trumpcare)—passed by the House, but not yet the Senate—you would receive an age-and income-based fixed credit, rather than a deduction, upon filing your tax return. Someone under 30 would receive $2,000 per year; between 30 and 39, $2,500; between 40 and 49, $3,000; between 50 and 59, $3,500; and 60 and above, $4,000. The sum amount of the credit cannot exceed $14,000, a maximum that comes into play for families with children. If your Modified Adjusted Gross Income (MAGI) income is $75,000 filing singly or $150,000 if married filing jointly, then the tax credit is reduced by 10% of the excess. For example, a family of four makes $200,000. Husband and wife are in their 40’s. Looking at age alone, the total tax credit is $10,000 ($3K+$3K+$2K+$2K). However, because income is $50,000 over the $150,000 limit, the credit is reduced by $5,000 ($50,000 multiplied by 10%). With AHCA, this family’s credit would be $5,000. If that family’s income increases to $250,000, they would no longer receive a credit.  Read More