Healthcare is becoming more expensive, and mounting medical debt remains the No. 1 cause of bankruptcy in the U.S. But health tax cuts can save families money on their medical bills each filing season, putting them in a better financial position. According to the results of a recent study, more than 29 million middle-class Americans may be eligible to receive more health savings in 2014, consumer health organization Families USA reports.
The tax cuts included in the healthcare reform laws are intended to offset a large amount of private insurance premium costs. The tax credits will be largely dependent on income and family size. Currently, a four-person family must bring in a yearly income of up to $88,200 in order to qualify for the credits. The income requirement falls to $73,240 for families of three people. The tax credits will also be applied on a sliding-scale, the report says.
Employees who work in small businesses are expected to benefit from the new tax credits. According to the report, roughly 15.2 million workers who are eligible for the credit are employed by a business with 100 employees or less, and nearly 11.4 million eligible employees work in a company of less than 25 workers.
Report data shows that 24.8 million people who will be eligible for new tax cuts reside in families in which one member is a full-time worker. Another 2.5 million live in families with at least one part-time worker. The new credits are largely geared toward those Americans most in need of tax help, with 56 percent of eligible consumers bringing in an income below the national poverty level.
"This is one of the largest middle-income tax cuts in history, and it will enable many hard-working Americans to afford private health insurance premiums that continue to stretch family budgets," Ron Pollack, executive director of Families USA said. "The tax cut will not only put significant extra cash in families' pocketbooks, but it will ease the burden of families' growing health care costs."
Separate studies reveal a large majority of Americans are confused over how the new healthcare reform laws will affect their insurance rates, taxes and medical care. Speaking with a tax professional about their eligibility for health-related tax savings may help consumers save money on medical care in the future.
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