If Covered California does not have accurate income information when calculating your premium assistance, you may receive too much and have to pay some or all of it back at tax time.
Or you may receive too little during the year, and you will receive a tax credit.
How does the premium tax credit work?
The premium tax credit is a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace, also known as the Exchange.
Do I have to pay back my premium tax credit?
A tax credit you can take in advance to lower your monthly health insurance payment (or “premium”). If at the end of the year you’ve taken more premium tax credit in advance than you’re due based on your final income, you’ll have to pay back the excess when you file your federal tax return.
How does Covered California affect my taxes?
Tax refunds just got more complicated because of Covered California. Some people will walk away with a fatter federal tax refund because of Covered California. This is the first year when the Affordable Care Act and the insurance system it created will affect federal tax returns. Uninsured people may face tax penalties
What is the maximum income to qualify for Covered California?
According to Covered California income guidelines and salary restrictions, if an individual makes less than $47,520 per year or if a family of four earns wages less than $97,200 per year, then they qualify for government assistance based on their income.
What does tax credit mean on Covered California?
Get the Right Financial Help in the Form of an Advanced Premium Tax Credit. Premium assistance, also called Advanced Premium Tax Credits (APTC), can lower the cost of health care for individuals and families who enroll in a Covered California health plan and meet certain income requirements.
How does health insurance tax credit work?
A tax credit you can use to lower your monthly insurance payment (called your “premium”) when you enroll in a plan through the Health Insurance Marketplace. If your estimated income falls between 100% and 400% of the federal poverty level for your household size, you qualify for a premium tax credit.
What is Premium Tax Credit 2017?
Premium Tax Credit MAGI Charts for 2017. Amy Pennza. March 2, 2017. Despite the political climate, premium tax credits (sometimes called subsidies) are still available to individuals who don’t receive health insurance through their company or a federal program like Medicaid or Medicare.
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