What Is The Impact Of Obamacare On Your Taxes?

Do You Get A Tax Refund?

Premium Tax Credits Under Obamacare

If you have an Obamacare plan through the Health Insurance Marketplace, you may qualify for a premium tax credit. In response to the Affordable Care Act, a premium tax credit was created.

Through the Health Insurance Marketplace, individuals who qualify will be able to afford their premiums. A majority of Obamacare’s tax effects come from the premium tax credit.

Premium Tax Credit Eligibility

Premium tax credits are available whether you enroll during Open Enrollment or during a Special Enrollment Period. Based on your income, you can estimate if you will qualify for a premium tax credit and how much it will be.

To learn more about enrolling in Marketplace health insurance, download our free guide.

What you need to know about using your premium tax credit

Is it possible for you to qualify for a premium tax credit? Obamacare premiums can be reduced using this tax credit. Premium tax credits are applied monthly to individual premiums. In some cases, you may be able to use it all or a portion of it toward your monthly premiums.

You can use your premium tax credit if you qualify. Each month, the Marketplace will issue your tax credit directly to your insurance company. With this method, you won’t have to worry about anything on your end. Have you considered reducing your monthly premium amount with your premium tax credit? If so, this would be considered an “advance payment of the premium tax credit.” 

When your income changes, here’s what you need to do

The amount of your premium tax credit will change if your income rises or falls during a calendar year. Whenever your income changes in real time, report it to the Marketplace. The amount of the premium tax credit can be adjusted this way. 

In this way, you won’t owe any taxes for your Obamacare. As part of your annual income tax return, you will reconcile your premium tax credits with your income. 

If you received any tax credits for your Marketplace insurance, you may be required to return any of the money you received in tax credits in your taxes based on your income. After reconciling your 1095-A form for the year, you may also find that you receive additional money back in the form of a tax refund. The form 1095-A must be on hand before you begin preparing your taxes if you are insured through the Marketplace.

Mandates Imposed By Each State

Since the federal individual mandate has been repealed, there are no longer tax penalties for people without health insurance coverage in most states, but we still recommend comprehensive coverage for protection against high medical costs. There may still be a fine or requirement for health insurance in 2020 if you live in California, DC, Massachusetts, New Jersey, or Rhode Island.

Obamacare: How To Enroll

For help with premium tax credits and your Obamacare health plan, you can always contact Insurance n You.

If you qualify for subsidies, you can find affordable marketplace plans. Medicaid, CHIP, and Medicare cover most Americans for less than $35 per month under the Affordable Care Act

In addition to health insurance coverage, some people may qualify for other options. You may qualify for Medicaid or CHIP (Children’s Health Insurance Program) if you are low income. 

The Medicaid or CHIP application process can be completed at any time, including outside of Open Enrollment, and you’ll begin receiving health coverage almost immediately if you qualify. In order to qualify for Medicare, a person must be 65 years old when they applWe can assist you in navigating the Marketplace if you wish to apply through Insurance n You. You can compare plans based on the expertise of our licensed agents. You and your family can then be provided with a plan tailored exactly to your needs. Your representative can also help you enroll in your chosen health plan, or guide you through the application process online.

Our Insurance n You Team can be reached at 1800-486-9138. We offer free health quotes online if you’d like to apply.

✏️ Published: 08/31/2022   👨🏻‍💼 By: Fernando Yemail

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