What's a premium tax credit?
Did you know you and your family may be eligible for a federal tax credits to offset your monthly cost of health insurance? When you apply for Marketplace Insurance coverage, you’ll find out if you qualify for the "premium tax credit" that lowers your monthly premium. These premium tax credits are commonly referred to as "subsidies".
The amount of your "subsidy" depends on the estimated household income for the year you want coverage.
CORRECTLY ESTIMATING YOUR HOUSEHOLD INCOME IS VERY IMPORTANT!!!!
If you incorrectly estimate your household income, you could have to pay back the subsidies you received when you file your income tax return!
You'll also need a few other items. Here's what you'll need to get your estimate:
Estimate your expected household income. Make sure you use your Adjusted Gross Income. This is your total (or “gross”) income for the tax year, minus certain adjustments you’re allowed to take. Adjustments include deductions for conventional IRA contributions, student loan interest, and more. Adjusted gross income appears on IRS Form 1040, line 11.
Determine how many people live in your household. Count yourself, your spouse if you're married, plus everyone you'll claim as a tax dependent, including those who don’t need coverage. The key is if you count them as a tax dependent on your tax return, include them in your count regardless of whether they're going to be on the policy or not. If a person living with you is NOT a tax dependent, don't include them in your count.
Once you've got this information together, contact us and we can walk you through the process to determine exactly how much premium tax credit you might qualify for!
