Health Insurance Premium Tax Credit
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SUMMARY: This document contains final regulations relating to the health insurance premium tax credit enacted by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010. These final regulations provide guidance to individuals related to employees who may enroll in eligible employer-sponsored coverage and who wish to enroll in qualified health plans through Affordable Insurance Exchanges (Exchanges) and claim the premium tax credit.
EFFECTIVE DATE: Effective date: These regulations are effective on
Applicability date: For date of applicability, see
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: This document contains final regulations that amend the Income Tax Regulations (26 CFR part 1) under section 36B of the Internal Revenue Code (Code) regarding whether health coverage under an employer-sponsored plan is affordable for individuals who are eligible to enroll in the plan by reason of their relationship to an employee (related individuals).
Explanation of Provisions and Summary of Comments
The proposed regulations provided that, for taxable years beginning before
These final regulations adopt the proposed rule without change. The language of section 36B, through a cross-reference to section 5000A(e)(1)(B), specifies that the affordability test for related individuals is based on the cost of self-only coverage. By contrast, section 5000A, which establishes the shared responsibility payment applicable to individuals for failure to maintain minimum essential coverage, addresses affordability for employees in section 5000A(e)(1)(B) and, separately, for related individuals in section 5000A(e)(1)(C). Thus, proposed regulations under section 5000A, which the
These final regulations apply to taxable years ending after
This Treasury decision is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. Section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and, because the regulations do not impose a collection of information requirement on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Code, the notice of proposed rulemaking that preceded these final regulations was submitted to the Chief Counsel for Advocacy of the
The principal authors of these final regulations are
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.36B-2 is amended by revising paragraphs (c)(3)(v)(A)( 2) and (c)(3)(v)(D), Example 2, to read as follows:
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(c) * * *
(3) * * *
(v) * * *
(A) * * *
( 2) Affordability for related individual. Except as provided in paragraph (c)(3)(v)(A)( 3) of this section, an eligible employer-sponsored plan is affordable for a related individual if the portion of the annual premium the employee must pay for self-only coverage does not exceed the required contribution percentage, as described in paragraph (c)(3)(v)(A)( 1) of this section.
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(D) * * *
Example 2. Basic determination of affordability for a related individual.
The facts are the same as in Example 1, except that C is married to J and X's plan requires C to contribute
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Deputy Commissioner for Services and Enforcement.
Assistant Secretary of the Treasury (Tax Policy).
CFR Part: "26 CFR Part 1"
RIN Number: "RIN 1545-BL49"
Citation: "78 FR 7264"
Document Number: "TD 9611"
Federal Register Page Number: "7264"
"Rules and Regulations"
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