The IRS has proposed regulations explaining how the temporary reduction of the personal exemption deduction under Sec. 151 to zero (REG-124810-19) affects taxpayers eligible for the Sec. 36B premium tax credit.
Sec. 36B allows a premium tax credit to eligible individuals who enroll themselves, their spouses or any dependents in a qualified health plan through a federal health insurance exchange.
The proposed regulations adopt the substance of guidance issued under Notice 2018-84 but clarify that the reduction of the personal exemption deduction to zero under Sec. 151(d)(5) does not affect the ability of individual taxpayers to claim the premium tax credit.
The IRS is accepting comments and requests for a public hearing until 60 days after publication of the proposed regulations in the Federal Register. Learn more.