Excluding Dependent Income to Increase Health Insurance Tax Credits.
This law allows families applying for health insurance subsidies (premium tax credits) to exclude certain earned income of their working children from the total household income calculation. This change helps more families qualify for higher subsidies, lowering their health insurance costs. The exclusion applies to income earned by dependents under 18 or students/apprentices under 24.
Key points
Wages or self-employment earnings of dependents will not count toward household income when determining eligibility for ACA premium tax credits.
The exclusion applies to dependents under 18, or students/apprentices under 24, but is capped at 15% of the taxpayer's modified adjusted gross income.
The goal is to make health insurance more affordable by increasing the amount of tax credits available to families with working, but still financially dependent, children.
Status:
Expired
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