Four online ACA estimators help you prepare for tax time

November 1, 2016

Taxpayers and businesses can use these before filing their federal tax returns.

Tax filing season will be here before you know it. As you plan and prepare your information over the next few months, don’t forget TAS has four online Affordable Care Act (ACA) estimators that can help you.

These four easy-to-use tools are designed to help taxpayers estimate ACA credits and payments. They can be used for individual taxpayers and businesses when preparing to file federal tax returns and for planning purposes throughout the year.

Individual Shared Responsibility Payment Estimator

This tool estimates any payment due for not having minimum essential medical insurance coverage for part or all of the year where no exemption is applicable. It can also help guide you to see if you may qualify for an exemption from this requirement.

If you need healthcare insurance coverage for 2017, enrollment opens November 1, 2016. Go to Healthcare.gov or to find your Marketplace Contact Information on IRS.gov, then contact that specific agency. Before enrolling, we suggest that you read this important article: Premium Tax Credit: 3 ways to reduce the chance of owing taxes.

 
Premium Credit – Change Estimator

This tool helps estimate premium tax credit changes throughout the year if your income or family size changes. It can estimate any increase or decrease in the final credit allowable before you file, which can help you predict if you might owe money or be getting some money back. Remember, you should always report any change in circumstance directly to your Marketplace as soon as possible.

If you did elect to get this credit in advance when you enrolled in your 2016 health insurance plan, you must file an IRS Form 8962, Premium Tax Credit (PTC), with your tax return. Failure to file this form can cause delays with the processing of your federal tax return.

 
Small Business Health Care Tax Credit Estimator

This tool estimates if certain small businesses might be eligible for the Small Business Health Care Tax Credit and for approximately how much. It can be used to see if you are eligible for a credit in a prior tax year, so you can file an amended tax return to claim it.


Employer Shared Responsibility Provision Estimator

Employers can use this to determine:

  • The number of your full-time employees, including full-time equivalent employees (FTEs);
  • Whether you might be an applicable large employer; and
  • If you are an applicable large employer (ALE), an estimate of the maximum amount of the potential liability for the employer shared responsibility payment that could apply to you based on the number of FTEs that you report if you fail to offer coverage to your full-time employees.

All four tools can be found on the Taxpayer Toolkit, by just entering “aca estimators” in the search bar or clicking on the “Get Help” tab above and scrolling down the page to find links to each tool. There are also links from IRS.gov’s Affordable Care Act Estimator Tools page.


To learn more about any of the ACA provisions, visit our Affordable Care Act (ACA) page or the IRS’s Affordable Care Act page.