Health Care Health Care, Taxes, and You: What Subsidies Offset Health Insurance Purchased in the Marketplace and Who Qualifies? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Nov 20, 2014 1 min read As part of the Affordable Care Act, to help people pay for coverage purchased through the Health Insurance Marketplace, low-to-moderate income families and individuals may qualify for a discount on monthly insurance premiums (know as a premium tax credit), as well as financial assistance on out-of-pocket costs. When you buy health insurance coverage in the Marketplace during this open enrollment (November 15, 2014 – February 15, 2015), the amount of your tax credit that you qualify for will depend on your 2015 household size and income, which you’ll provide on your Marketplace application. If your 2015 income falls within the following ranges you may be eligible. The lower your income is within these ranges, the bigger your premium tax credit. $11,670 to $46,680 for individuals $23,850 to $95,400 for a family of 4 You can choose to apply your Premium Tax Credit in a few ways. You can use all of it spread evenly throughout the year (referred to as an advanced premium tax credit), you can use part of it throughout the year, or you can choose to get the whole tax credit when you file your 2015 taxes. If you use less of your tax credit to offset costs during the year, you may end up with a bigger tax refund when you sit down to file your taxes. To find out if you qualify for a subsidy to help you purchase health insurance, check out our free, easy-to-use Health Care Eligibility Calculator. You can also find out more about how to balance health care costs with your needs here. Previous Post Why Shop in the Health Insurance Marketplace? Next Post Health Care, Taxes, and You: If I Have Medicaid, am… Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 5 responses to “Health Care, Taxes, and You: What Subsidies Offset Health Insurance Purchased in the Marketplace and Who Qualifies?” We were not sure what our adjusted gross income was going to be for 2014 to qualify for subsidies and realize now that we will be under and eligible for subsidies. Since we paid the full amount per month for the insurance, will we get the subsidies we should have received back when we do our taxes for 2014? Reply Hi Nadine, Yes, you will get them back in the form of a tax credit. Thank you, Lisa Greene-Lewis Reply How do I get an exemption form for not being able to afford the affordable care act. My Insurance got cancelled on Aug. 15. It went from 188 per month to 453per month. I can not afford it Reply Terry, Without knowing your income and family status, we cannot determine your eligibility for exemption. But you can go to the Health Care Eligibility Calculator at https://turbotax.intuit.com/health-care and complete the questions to determine if you are eligible. Thank you, Mary Ellen Reply Hi Terry, Go to TurboTax Health https://turbotax.intuit.com/health-care and our Exemption check tool where you can find out about specific exemptions, apply for an exemption, and ask more questions about the affordable care act. Thank you, Lisa Greene-Lewis Reply Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?
We were not sure what our adjusted gross income was going to be for 2014 to qualify for subsidies and realize now that we will be under and eligible for subsidies. Since we paid the full amount per month for the insurance, will we get the subsidies we should have received back when we do our taxes for 2014? Reply
Hi Nadine, Yes, you will get them back in the form of a tax credit. Thank you, Lisa Greene-Lewis Reply
How do I get an exemption form for not being able to afford the affordable care act. My Insurance got cancelled on Aug. 15. It went from 188 per month to 453per month. I can not afford it Reply
Terry, Without knowing your income and family status, we cannot determine your eligibility for exemption. But you can go to the Health Care Eligibility Calculator at https://turbotax.intuit.com/health-care and complete the questions to determine if you are eligible. Thank you, Mary Ellen Reply
Hi Terry, Go to TurboTax Health https://turbotax.intuit.com/health-care and our Exemption check tool where you can find out about specific exemptions, apply for an exemption, and ask more questions about the affordable care act. Thank you, Lisa Greene-Lewis Reply