Affordable Care Act

[dhauschel]

My question is about the affordable care act and income limits.  I was on an ACA health plan with a subsidy for all of 2016.  My income would normally be the 20420 necessary to qualify for this plan.  This year I had to take 6 weeks off because I had a baby.  I did not get paid for this time.  Because of this my income is below the 20420.  Nebraska does not have expanded medicaid.  How will this affect my taxes?  Will I have to pay my subsidy back?

[Critter]

You do not need to pay it back and you may even qualify for more of the credit. 

[dhauschel]

Are you sure? If you don't make the required income, 20420 in my daughters case, you don't get a subsidy on a new application.  Her lower income is an after application/acceptance anomaly

[Critter]

You are now asking a different question ... if you said on the 2017 ACA application that you would make $20K and you don't then on the tax return you are not penalized for not making enough.... however you may fall in to the "hole" situation for the next tax year as described below ... Now for the 2018 application ... if you indicate you will not make a minimum amount per the rules then you are not eligible for the advance credit (or ACA insurance) since you are not required to have insurance since you are below the poverty level. In state's that did not expand medicaid there is a weird "hole" that you can fall into ... you either make so little that you are medicaid eligible or you make enough to get the ACA benefits but if you fall in the middle (the "Hole") you are not poor enough for medicaid and not wealthy enough for the ACA. If you don't understand this then talk to any health insurance person locally and they will be happy to educate you.

[TaxGuyBill]

When applying for 2018 health insurance, you need to give them your 2018 Estimated Income.  If that income qualifies *AND* the Marketplace accepts your Estimated Income, you should be able to receive Advance monthly credits to reduce your monthly cost of insurance.

If the Marketplace does NOT accept your Estimated income, the first step would be to try to make them accept it by explaining the situation.  If they still don't accept the income, you would pay the 'full cost' of insurance each month.  However, if your ACTUAL income (and other circumstances) qualify, you would received the full amount of credit ("subsidy") when you file your 2018 tax return.

[Critter]

The subsidy is only available if you buy insurance thru the ACA marketplace ... so if you don't qualify for the advance credit you may get some later on the return.