You may be eligible and get approved for a health insurance subsidy if you enter the wrong annual income amount based on the number of people in your household.
The Premium Tax Credit is based on your annual income and your income needs to fall within a certain range.
- The range is 100% to 400% of the federal poverty line amount for the size of your family for the current tax year.
Please click here for the Federal Poverty Level (FPL) for 2021 and scroll down to the 2021 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES AND THE DISTRICT OF COLUMBIA table.
Please see below how the federal poverty levels are used to determine eligibility for reduced-cost health coverage:
- Income above 400% FPL: If your income is above 400% FPL, you may now qualify for premium tax credits that lower your monthly premium for a 2021 Marketplace health insurance plan.
- Income between 100% and 400% FPL: If your income is in this range, in all states you qualify for premium tax credits that lower your monthly premium for a Marketplace health insurance plan.
- Income below 138% FPL: If your income is below 138% FPL and your state has expanded Medicaid coverage, you qualify for Medicaid based only on your income.
- Income below 100% FPL: If your income falls below 100% FPL, you probably won’t qualify for savings on a Marketplace health insurance plan or for income-based Medicaid.
The Marketplace uses an income number called modified adjusted gross income (MAGI) to determine eligibility for savings. It’s not a line on your tax return.
Your MAGI is the total of the following for each member of your household who’s required to file a tax return:
- Your adjusted gross income (AGI) on your federal tax return
- Excluded foreign income
- Nontaxable Social Security benefits (including tier 1 railroad retirement benefits)
- Tax-exempt interest
- MAGI does not include Supplemental Security Income (SSI)
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
