Two major taxes created by the Affordable Care Act raised $27 billion in 2015.
Those taxes, the 0.9% Medicare surtax and the 3.8% net investment tax, accounted for 1.85% of the $1.45 trillion in individual income tax that the Internal Revenue Service collected in 2015, according to the latest IRS Statistics of Income Bulletin.
The IRS has already released some Affordable Care Act premium tax credit subsidy program data for 2015, but the new bulletin gives data for the major ACA taxes as well as for the subsidy program, and it shows the ACA items alongside other individual income tax return data.
Premium Tax Credit Subsidy
Former President Barack Obama signed the Patient Protection and Affordable Care Act of 2010, the main part of the Affordable Care Act package, into law March 23, 2010.
The Affordable Care Act public exchange system started to come to life in October 2013, with the first coverage sold taking effect Jan. 1, 2014, and the first premium tax credit subsidies flowing to the exchange plan issuers in 2014.
About 5.7 million of the people who filed individual income tax returns for 2015 reported using the advance premium tax credit subsidy in 2015.
Those taxpayers received an average of $3,514 in aid each, down from an average subsidy amount of $3,572 in 2014.
Total advance premium tax credit payments increased to $20 billion, from $12 billion in 2014.
The “individual shared responsibility” provision in the Affordable Care Act requires many people to have what the government classifies as solid heath coverage for most of the year or pay a penalty.
The drafters of the law designed the size of the penalty to increase each year for the first few years, while people were getting used to the penalty system.
Only 6.6 million taxpayers admitted to owing the penalty for 2015. That was down from 8 million who reported owing the penalty for 2014.
Because of the increase in the penalty rate, the average penalty owed increased to $457 per penalty payer, up from an average of $206 for 2014.
Affordable Care Act Taxes