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April 5, 2022

IRS issues proposed premium tax credit regulations on affordability of minimum essential coverage for family members

The IRS has issued proposed regulations (REG-114339-21) under IRC Section 36B on eligibility for the premium tax credit (PTC). The new regulations provide that affordability of employer-sponsored minimum essential coverage for an employee's family members is determined based on the employee's share of the cost of covering the employee and those family members, rather than simply the cost of covering the employee. Further, the regulations propose a minimum-value rule for employees' family members based on the benefits provided to the family members. A Tax Alert on the regulations is forthcoming.