How your Obama Health Care Plan will impact your taxes
Thinking about how Obama health care plans affect your taxes? And if having an Affordable Care Act plan can translate into more cash in your pocket?
Obama Health Care and the premium tax credit
When you have an Obama health care plan via the Health Insurance Marketplace, then chances are you’ll qualify for what’s often known as a premium tax credit. The premium tax credit was established by the Affordable Care Act. It makes private health insurance premiums for coverage bought via the Health Insurance Marketplace much less expensive for people who are eligible. The premium tax credit is the primary manner that having an Obama health care plan impacts your taxes.
How you can qualify for a premium tax credit
However you apply for Marketplace insurance, whether it’s through HealthCare.gov or a health insurance agency like us, you’ll discover if you will be eligible for a premium tax credit. You can qualify for a premium tax credit whether or not you enroll in Open Enrollment or via a Special Enrollment Period. You may use your income to estimate whether or not you’ll qualify for the premium tax credit and the amount of the credit you will be receiving.
How do I use my premium tax credit?
Qualify for a premium tax credit? You can use this tax credit to decrease what you will pay in premiums for your Obama health care plan. The premium tax credit is utilized towards every month’s individual premium. You may elect to make use of all or some of the tax credit towards your month-to-month premiums.
Wish to use your premium tax credit? Then the Marketplace will go forward and send your tax credit to your health insurance firm every month. You won’t then have to be concerned about something on your end in terms of receiving your discounted rate. Elect to make use of your premium tax credit to scale back your month-to-month premium? Then that is an “advance payment of the premium tax credit.”
What happens if I have to adjust my income?
If your earnings goes up or down in the next 12 months, it will affect your premium tax credit total. If you’re cognizant of any important changes to your earnings in the here and now, report them to the Marketplace or to one of our health insurance brokers. You’ll be able to modify your premium tax credit total. This way, we can make sure you don’t owe back taxes because of your Obama health care plan. If you put together your annual revenue tax return, you’ll reconcile your premium tax credit towards your earnings.
Utilizing your 1095-A form, you will notice if, primarily based on your definite end-of-year household earnings for the tax year, it’s possible you’ll have to pay back any of the cash you obtained in tax credits on your Marketplace insurance in your taxes. Conversely, you may also discover that you may be given cash back in your taxes in the form of a tax refund after you reconcile your 1095-A for the year. Because of this it’s important that you’ve got the 1095-A form before you do your taxes if you are insured via the Marketplace.
State Individual Mandates
The federal individual mandate has been repealed, which means there no longer is a tax penalty if you don’t have private health insurance coverage in most states, however we nonetheless advocate getting private health insurance to guard your self towards excessive medical bills. It’s necessary to know that in the event you reside in California, DC, Massachusetts, New Jersey, or Rhode Island, you should still have coverage in 2020 or may pay a fine.
How to get an Obama health care plan
When you’ve got an Obama health care plan and have any questions on how the premium tax credit works together with your plan, feel free to contact one of our health insurance brokers personally or reach us at our office (954) 674-1444.
Should you be considering in enrolling in a private health insurance plan from the Marketplace, you’ll be able to shop for plans here, or reach out to a health insurance broker via our office number (954) 674-1444.
Marketplace plans are fairly inexpensive, particularly in the event you qualify for subsidies. Most customers who use our services pay $35/month or less for ACA health coverage.