(23) Health Beneﬁt Plan Credit (UC §59-10-1023)
**Amounts itemized or otherwise deducted in determining federal taxable income, or used to claim a federal credit, cannot be used for this Utah credit.
You may claim a credit of 5 percent of the amount paid for a health beneﬁt plan only if you, or your spouse on a joint return, are not insured under a health beneﬁt plan maintained and funded in whole or in part by your employer or another person’s employer. You cannot claim this credit if you choose not to participate in a plan maintained and funded by a current or former employer. You also cannot use pre-tax deductions from wages through employer-sponsored programs, such as a cafeteria or ﬂ ex plan, to claim the credit.
Payments to COBRA health plans qualify for this credit if 100 percent of the premiums are paid by you or your spouse, and are not subsidized or funded by the current or former employer or another person’s employer. You cannot claim COBRA payments if you choose not to participate in a plan maintained and funded by a current or former employer.
Excluded Amounts The credit is 5 percent of amounts paid for health beneﬁt plans (but not self-insurance) after deducting:
1. amounts used to calculate a credit for health insurance costs of eligible persons (IRC Section 35);
2. income exclusions for employer-provided coverage under an accident or health plan (IRC Section 106);
3. cafeteria or employer plans covering all employees who may choose among two or more cash and qualiﬁ ed beneﬁts (IRC Section 125);
4. trade or business expenses for self-employed persons up to 100 percent of premiums paid, but not more than your net business income (IRC Section 162);
5. medical and dental expenses deducted on federal Schedule A (IRC Section 213); and
6. all policies that are not part of your health beneﬁ t plan, such as dental, vision, supplemental health or Medicare supplemental policies.
The maximum credit is:
1. $300 for a single taxpayer (including married ﬁ ling separately, head of household, and qualifying widow(er)) with no dependents;
2. $600 for a married couple ﬁ ling jointly with no dependents; and
3. $900 for all taxpayers (any ﬁ ling status) with dependents insured under the health beneﬁt plan.
FYI: Patient Protection and Affordable Care Act You may qualify for this credit if you purchase health insurance through an exchange established under the Patient Protection and Affordable Care Act (PPACA, also commonly known as Obamacare) if:
1. the plan purchased on the exchange meets the requirements listed above, and
2. you were not able to participate in an employer sponsored plan.
You may only take the credit for amounts you paid for a plan through an exchange.
You must adjust your Utah credit for health insurance underpayments or credits on your previous year’s federal return.
There is no form for this credit. Keep all related documents with your records.