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If you earned more than you estimated, and you got a subsidy for your health insurance, you may have to pay back some subsidy. The maximum amount of payback is tied to your actual income.
If your income is below 400% of the federal poverty level, there is a cap on the amount you'll have to pay back, even if you received more in assistance than the amount of the cap. However, at higher income levels, you'll have to pay back the entire amount you received, which could be a lot.
If you already benefited from premium assistance payments, you'll have to pay them back to the IRS when you file your income taxes for the year. The amount you'll have to pay back depends on your family income. You calculate the amount you have to repay by completing IRS Form 8962, Premium Tax Credit.
If I get an Obamacare subsidy in the exchange, is the subsidy amount considered income? A. No. The subsidies (both premium assistance tax credits and cost-sharing) are not considered income and are not taxed.
Generally you will have to reapply for Medicaid every year. That being said if she maintains the job, and her income is high enough, she may become ineligible for Medicaid due to income.
Overestimating Your Income If you overestimated your income for the year, then the subsidy the government paid in advance to your insurer was smaller than it should have been. No harm. No foul. The difference will be added to your tax refund or will decrease the amount of taxes you owe.
You Might Have to Pay the Health Insurance Subsidy Back If you overestimated your income for the year, then the subsidy the government paid in advance to your insurer was smaller than it should have been. No harm. No foul. The difference will be added to your tax refund or will decrease the amount of taxes you owe.
This is officially called the premium tax credit. The amount of the premium assistance is based on your estimated income and the amount of your health insurance premiums. If you already benefited from premium assistance payments, you'll have to pay them back to the IRS when you file your income taxes for the year.
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