Market Place Health insurance if you don't have a job and my income tax liability!

[Sam Khan]

I have been laid off due to a company-wide reorganization, and as a result, I will lose my health insurance after February 2025. Currently, I don’t have any source of income until I find another job, and I’m unsure when that will happen. I believe the Marketplace requires last year’s tax return for income verification. However, if I submit last year’s tax document, I might end up paying the full premium for health insurance for myself and my wife. Without a source of income, paying the full premium would be extremely difficult. Is there any option or workaround to avoid paying the full amount until I secure another job?

[xmasbaby0]

We give advice and information regarding income tax returns and the tax software in this forum.    You should be asking someone at healthcare.gov these questions.   They have a lot of people you can talk to, especially now during open enrollment.

[rjs]

I'm sure that the Marketplace people understand that incomes change, and they have procedures to make adjustments for changes in income. As xmasbaby0 said, you have to talk to them about it.

I know that they have procedures to make adjustments if your income goes up. If you get a reduced monthly payment and then you get a new job, be sure to tell the Marketplace that your income has increased, and cancel your Marketplace insurance when your new insurance starts. A lot of people get burned on their tax return because they didn't tell the Marketplace when their income increased. They continued to get a big subsidy (premium tax credit) for their insurance based on low income, and they have to pay a lot of it back when they file their tax return.

[xmasbaby0]

@Sam Khan To get help with healthcare.gov

https://www.healthcare.gov/contact-us/

[Sam Khan]

I understand. The reason I asked this question is that when you submit tax returns, you may owe money if your actual income turns out to be higher than what you initially reported. What I’m trying to understand is, if I pay a higher premium now, would I receive a refund when I file my taxes at the end of next year using TurboTax?

[xmasbaby0]

When you have marketplace insurance, your monthly premium is based on the income that you tell the marketplace you expect to  receive during the year.   If you end up having a higher income than you told them (and do not notify them during the year so they can adjust the premium) then you could owe at tax time.   If you actually have LESS income than you told them you would get, you could get a refund.   When you enter your income and your 1095A, the software reconciles the premium amount and the amount of tax due/refund.

Please have a conversation with a healthcare.gov rep; they will explain all of this to you.