Michigan Tax Credit Helps Cover Health Insurance Premiums
In Michigan, a tax credit could help out-of-work residents pay for health insurance. If eligible the Health Coverage Tax Credit would pay up to 80 percent of health care costs.
The IRS is not usually known for its kindness; and certainly not for its help in health insurance matters. However, Michigan residents are fortunate in this respect. The tax credit applies to the more than 40,000 Michigan residents who were laid off due to foreign competition, or had their pensions cut off and were then forced to purchase health insurance.
Michiganians must have health insurance coverage for the credit to assist. The IRS has spent a significant amount in order to help alleviate the cost of buying health insurance. The credit makes coverage affordable and not out of reach for many such as those who face foreclosure or bankruptcy.
Pensions were also reduced for many this year as the government took over pension plans through the Pension Benefit Guaranty Corp. This makes the little known credit even more helpful to those who were expecting a heftier pension.
The IRS is currently trying to publicize the Health Coverage Tax Credit as part of Obama’s American Recovery and Reinvestment Act which was made to draw America out from the depths of recession.
The tax credit is available to anyone who is certified under the Trade Adjustment Assistance Act and for those whose pension was overtaken by the government. Many Delphi employees have already signed up for the credit. They can receive coverage for nearly $15,000 in premiums.
The Michigan tax credit can be claimed by filing IRS Form 8885 as well as other supporting documentation. Health insurance premium coverage will return to 65 percent after this year.
Written by Lani Shadduck