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Federal Tax

Final Regs Fix Premium Tax Credit’s ‘Family Glitch’

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

The IRS issued final regulations under Code Sec. 36B that change the rules for determining eligibility for the premium tax credit (PTC). (TD 9968, 10/11/2022)

Under the final regs (T.D. 9968) employer-sponsored minimum essential coverage for an employee’s family members is considered “affordable” based on the employee’s share of the cost of covering the employee and their family members, not just the employee. The final regs also make changes to the rules for determining whether employer coverage provides a minimum level of benefits (i.e., minimum value); conform amendments to the current regs; and clarify the treatment of premium refunds.

These changes correct what some have called the “family glitch” within the Affordable Care Act.

The final regs are effective December 13, 2022.

For more information on the premium tax credit, see Checkpoint’s Federal Tax Coordinator, ¶ A-4241.

 

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