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Tools Help Estimate ACA Credits and Payments

TASThe Taxpayer Advocate Service has developed several tools to assist individuals and employers in estimating Affordable Care Act related credits and payments. The service, which operates as an independent organization within the Internal Revenue Service, cautions these tools provide estimates and should be used as a guide in making decisions regarding tax situations.

 The tools include the following:

1. The Premium Tax Credit Change Estimator. This can help estimate how an individual's premium tax credit will change if income or family size changes during the year. It does not report changes in circumstances to an individual's Marketplace.

2. The Individual Shared Responsibility Payment Estimator. Individuals can use this tool to estimate the amount they may have to pay if they did not have minimum essential coverage during the year. It can only provide an estimate of an individual shared responsibility payment. To determine the payment when individuals file tax returns, they should use the Shared Responsibility Payment Worksheet in the instructions for Form 8965.

3. The Small Business Health Care Tax Credit Estimator. This tool can help individuals determine who might be eligible for the Small Business Health Care Tax Credit and determine the amount of credits they might receive. It provides individuals with an estimate for tax year 2014 and beyond. However, some figures used in determining the credit are indexed for inflation. Because of this, the estimator cannot provide detailed estimates far into the future.

The TAS notes estimates generated by the tools are may not match the actual credits or payments an individual will reports on a tax return. The IRS cannot validate the accuracy of the estimator calculations for a specific circumstance.

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