Be Cautious With Your Insurance Subsidy
You Might Have To Pay It ALL Back
Subsidies, they are great! But you HAVE to get your income correct! When you claim you will make a certain amount of money in a year and you receive a subsidy from the government to help pay your health insurance premiums, you must notify them of any changes.
If you forget to make an adjustment to your income or even your family size, and the government keeps subsidizing your health insurance, you will have that money taken out of your tax refund when you file your taxes.
We suggest that any time you have a change to your income or your family, that you call us. Let us know of the changes and we will take care of everything.
You do have an agent, right?
If you’ve had a “Life Event” like having a baby, get divorced, married or adopt, and have a health insurance plan through the Governments website that has a subsidy, you’ve GOT to let them know. This is an on-going process. Anytime you fill out a health insurance application through their website and get a subsidy, you cannot expect to fill out the application once a year and figure you are done until the next year. Any “Life Event” will affect your “subsidy” (including changes to your income), up or down. These changes affect your advanced premium tax credit amount.
The “Advanced Premium Tax Credit” (APTC) is the subsidy (the monthly amount the government is paying to help you pay your premiums) that helps you afford your health insurance plan. The IRS at the end of the year will adjust what you’ve received, and what you should have received, and that will be taken from your tax refund, or worse, you’ll have to pay the IRS back. If your income went down, or you had more people in your family to support on the same income, then you may be entitled to get a larger tax refund.
If you have an income that goes up and down monthly, you’ll want to make those changes monthly. You can also estimate your yearly income and at the end of the year, the IRS will calculate if you were over-subsidized (received too much subsidy and you owe money), or under-subsidized (you get a refund).
Check out this recent article in US News and World Report: Recipients of Obamacare subsidies could face tax surprise
Discussing Subsidies With Nevada Insurance Enrollment
Navigating through the many options of insurance can be confusing and chaotic, but speaking with a locally licensed insurance agent will help you to obtain the right coverage you need. You’ll have the peace of mind knowing that you are adequately insured when life complications arise. We work hard to find the most competitive quotes for your needs. Contact us today to begin the process of finding the best insurance plan for your family.