Are there still tax credits for ACA plans?

Republicans generally oppose the Affordable Care Act (ACA) because they believe it represents an overreach of federal power and increases market inefficiencies.

According to policy platforms and conservative lawmakers, core objections include:

• Government Role and Mandates: Republicans have long criticized the law's federal regulations and mandates, arguing that government intervention distorts free-market principles and limits individual choice.
• Cost and Spending: Critics contend that the ACA's subsidies, taxes, and Medicaid expansions drive up federal spending and national debt, placing a heavy financial burden on taxpayers.
• Free-Market Alternatives: Rather than government-subsidized insurance pools, conservative proposals often favor market-based solutions—such as Health Savings Accounts (HSAs) and allowing insurance sales across state lines—which proponents argue increase competition and lower costs.

Yes, the Affordable Care Act (ACA) is still in effect in 2026, and individuals can continue to enroll in coverage through the health insurance marketplaces.

Current Status and Changes in 2026

• Active Law: The foundational framework of the ACA remains fully operational, providing regulated private health insurance plans, consumer protections, and essential health benefits.
• Expiration of Enhanced Subsidies: Temporary enhanced premium tax credits expired at the end of 2025, meaning subsidy levels have returned to pre-2021 formulas. This change has increased average out-of-pocket monthly premiums for many enrollees.
• Marketplace Operations: Consumers can still shop for plans, though policy adjustments and expiration of special low-income year-round enrollment provisions mean adherence to standard rules and deadlines is tighter.

You can review your current options or explore available plans directly on HealthCare.gov.

State and local sales taxes (instead of state income taxes) and out-of-pocket charitable expenses are widely considered among the most frequently missed tax breaks by filers.

Because tax software and standard checklists often focus on big-ticket items like mortgages and major cash donations, smaller or flexible write-offs slip through the cracks. Review the most commonly overlooked deductions below to see if you qualify.

Top Overlooked Deductions

• State Sales Tax vs. Income Tax: You can choose to deduct either your state and local income taxes or your state and local general sales taxes. This is especially helpful if you live in a state with no income tax (like Florida or Texas) or if you made a major purchase like a car or boat during the year.
• Out-of-Pocket Charitable Contributions: Cash donations get all the attention, but non-cash items (like clothing or household goods given to charity) and the standard mileage rate for driving to volunteer work are fully deductible.
• State Income Taxes Owed from Prior Year: If you paid additional state income tax when you filed your previous year's state return, that extra amount paid can often be deducted on your federal return for the year you actually paid it.
• Reimbursements and Premiums for Self-Employed: If you are self-employed, you might forget to write off health insurance premiums, qualified Medicare premiums, or standard mileage for business trips that weren't tracked through a formal payroll.
• Out-of-Pocket Classroom Expenses: Eligible educators can deduct unreimbursed expenses for books, supplies, and equipment used in the classroom.

You can read more detailed checklists on the TurboTax Guide to Overlooked Deductions or explore H&R Block's Deduction Overview.

A 70-year-old may have to pay taxes on Social Security, because the IRS bases tax rules on total income rather than your age.

How Tax is Decided

The Social Security Administration uses a "combined income" formula to check if your benefits are taxable.

• Combined Income equals your adjusted gross income (your regular taxable money like pensions or wages) plus any tax-exempt interest, plus half of your annual Social Security benefits.
• If Social Security is your only income, you generally do not pay federal income tax or need to file a return.

Federal Income Thresholds

If you have other money coming in, your tax rate depends on your filing status and combined income:

Single Filers

• Under $25,000: You pay 0% tax on your benefits.
• $25,000 to $34,000: Up to 50% of your benefits may be taxed.
• Over $34,000: Up to 85% of your benefits may be taxed.

Married Filing Jointly

• Under $32,000: You pay 0% tax on your benefits.
• $32,000 to $44,000: Up to 50% of your benefits may be taxed.
• Over $44,000: Up to 85% of your benefits may be taxed.

State Taxes

Most U.S. states do not tax Social Security benefits. Only nine states still tax them in some form: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.

Taxpayers age 65 and older can claim a temporary additional federal tax deduction of $6,000 per eligible individual ($12,000 total for married couples if both qualify) for tax years 2025 through 2028.

How the Senior Deduction Works

• Stackable Benefit: The new $6,000 deduction is in addition to the existing regular standard deduction and the extra age-based standard deduction for seniors.
• Filing Flexibility: You can claim this deduction whether you choose to take the standard deduction or itemize your deductions.
• Eligibility: You must turn 65 by the last day of the tax year, have a valid Social Security number, and—if married—file a joint return.

Income Limits and Phase-Outs

• Thresholds: The deduction begins to phase out for single filers with a modified adjusted gross income (MAGI) over $75,000 and for joint filers earning over $150,000.
• Complete Phase-Out: The deduction reduces gradually and reaches $0 for single filers with a MAGI of $175,000 or more, and for joint filers making $250,000 or more.
• You can review official details and check qualifications directly through the Internal Revenue Service.