Hoping to get some clarification about reconciling premium tax credits: Since I’m unemployed, I’m able to get a $393 premium tax credit, making me eligible to enroll in a plan with a $0/month premium (if I choose to receive the advance credit payments). What confuses me though is having to reconcile the credits when I file taxes next year if I choose this particular plan.
I estimated my yearly income as the amount I know I will receive in unemployment compensation this year. However, I assume I’ll be offered a job by the end of the year (but there is of course no way of knowing this for sure or how much the salary will be). So let’s just say as an example this is what my situation becomes: I’m offered a new job and my annual income will be $20,000 higher than what I estimated when applying. So, I cancel my ACA plan as soon as I’m offered the job (before my income actually goes up) and I only ended up using the ACA plan for 3 months. If my actual annual income ends up being well above the poverty line by the end of this year, will I have to pay back (in full) each of the 3 months of the ACA plan I was enrolled in? Or the entire year regardless of when I canceled the plan since I chose to receive advance credit payments? Should I reapply and edit my estimated annual income to be higher *assuming* I get a job?
I don’t want to have to pay hundreds of dollars for a plan now (since I’m unemployed), even if I’m able to get a refund for it all when I file taxes next year. But I also don’t want to end up having to pay back thousands of dollars when I end up filing if I get a well-paying job by the end of this year. Appreciate any clarification and/or advice!
submitted by /u/snb031292
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Hoping to get some clarification about reconciling premium tax credits: Since I’m unemployed, I’m able to get a $393 premium tax credit, making me eligible to enroll in a plan with a $0/month premium (if I choose to receive the advance credit payments). What confuses me though is having to reconcile the credits when I file taxes next year if I choose this particular plan. I estimated my yearly income as the amount I know I will receive in unemployment compensation this year. However, I assume I’ll be offered a job by the end of the year (but there is of course no way of knowing this for sure or how much the salary will be). So let’s just say as an example this is what my situation becomes: I’m offered a new job and my annual income will be $20,000 higher than what I estimated when applying. So, I cancel my ACA plan as soon as I’m offered the job (before my income actually goes up) and I only ended up using the ACA plan for 3 months. If my actual annual income ends up being well above the poverty line by the end of this year, will I have to pay back (in full) each of the 3 months of the ACA plan I was enrolled in? Or the entire year regardless of when I canceled the plan since I chose to receive advance credit payments? Should I reapply and edit my estimated annual income to be higher *assuming* I get a job? I don’t want to have to pay hundreds of dollars for a plan now (since I’m unemployed), even if I’m able to get a refund for it all when I file taxes next year. But I also don’t want to end up having to pay back thousands of dollars when I end up filing if I get a well-paying job by the end of this year. Appreciate any clarification and/or advice!
submitted by /u/snb031292 [link] [comments]Read Morer/HealthInsurance